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Ordinance No. 8,471
981210 -4 ORDINANCE NO. 8471 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ® RATIFYING SEPARATE EARNEST MONEY CONTRACTS EXECUTED BY ITS ATTORNEY -IN -FACT FOR THE PURCHASE OF PROPERTY FOR THE DEVELOPMENT OF A PARK IN THE LINCOLN CEDARS SUBDIVISION FROM LAURA BROUSSARD, JENIAL LOCKETT, CLEOPHUS BARNETT AND DORA SMITH, INDIVIDUALLY AND AS INDEPENDENT EXECUTRIX OF THE ESTATE OF WAUNICE BELL; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, ratifies the Earnest Money Contract executed by its attorney -in -fact for the purchase of certain property described in Section 2 therein from Laura Broussard. Such contract is marked Exhibit "A" and attached hereto and incorporated herein for all intents and purposes. Section 2: That the City Council of the City of Baytown, Texas, ratifies the Earnest Money Contract executed by its attorney -in -fact for the purchase of certain property described in Section 2 therein from Jenial Lockett. Such contract is marked Exhibit "B" and attached hereto and incorporated herein for all intents and purposes. Section 3: That the City Council of the City of Baytown, Texas, ratifies the Earnest Money Contract executed by its attorney -in -fact for the purchase of certain property described in Section 2 therein from Cleophus Barnett. Such contract is marked Exhibit "C" and attached hereto and incorporated herein for all intents and purposes. Section 4: That the City Council of the City of Baytown, Texas, ratifies the Earnest Money Contract executed by its attorney -in -fact for the purchase of certain property described in Section 2 therein from Dora Smith, Individually and as Independent Executrix of the Estate of WaunIce Bell. Such contract is marked Exhibit "D" and attached hereto and incorporated herein for all intents and purposes. Section 5: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 10 °i day of December, 1998. PETE C. ALFARO, Mayor ATTEST: EIL: EEN P. HA L. City Clerk APPROVED AS TO FORM: 0' C�'�,C� -",/ - I ACIO RAMIREZ, SR., D Attorney cA MyDocumcnts\ CounciHMeetingsWeceinbcrlProperty Purchase Lin coI nCedars4 Park. doe I0-25-93 ONE TO FOUR FAMILY RESIDENTIAL EARNEST MONEY CONTRACT (RESALE) ALL CASH, ASSUMPTION, THIRD PARTY CONVENTIONAL OR SELLER FINANCING PROIN ULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) NOTICE: Not For Use For Condominium Transactions 1. PARTIES: ( Selier) agrees to sell and convey to City of Baytown (Buyer) and Buyer agrees to buy from Seller the property described below. 2. PROPERTY: LotS 9 R 11 Block 1 Lincoln Cedar (Section 1 Addition, City of _fjaytnwn _. _ _ _ I County, Texas, known as ir7 I-}�rrt ri l _Cedar Or &--' f. 2n1 1 i nrn1 n pdar. Dr. (Address), or as described on attached exhibit, together with the following items, if any: curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall -to -wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennae and satellite dish with controls, permanently installed heating and air conditioning units and equipment, window air conditioning units, built -in security and fire detection equipment, lighting and plumbing fixtures, water softener, built -in kitchen equipment, garage door openers with controls, built -in cleaning equipment, all swimming pool equipment, shrubbery, permanently installed outdoor cooking equipment, built -in fireplace screens and all other property owned by Seller and attached to the above described real property except the following property which is not included: All property sold by this contract is called the 'Property.' The Property ❑ is ® is not subject to mandatory membership in an owners' association and its assessments and requirements. 3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer .. ............................... S B. Sum of all financing described below (excluding any private mortgage insurance [PMI] premium) . S 0 C. Sales Price (Sum of A and B) ............ ............................... $_,A pnnn_AA 4. MANCENG: The portion of Sales Price not payable in cash shall be paid as follows: (Check applicable boxes below) E] A. ASSUMPTION: ❑ (1) Buyer shall assume the unpaid principal balance of a first lien promissory note payable to which unpaid balance at closing will be $ The total current monthly payment including principal, interest and reserve deposits is S Buyer's initial payment shall be the first payment due after closing. (2) Buyer shall assume the unpaid principal balance of a second lien promissory note payable to which unpaid balance at closing will be S The total current monthly payment including principal, interest and reserve deposits is $ . Buyer's initial payment shall be the first payment due after closing. Buyer's assumption of an existing note includes all obligations imposed by the deed of trust securing the note. If the unpaid balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balance(s) stated above, the ❑ cash payable at closingE] sales price shall be adjusted by the amount of any variance; provided, if the total principal balance of all assumed loans varies in an amount greater than $350.00 at closing, either party may terminate this contract and the Earnest Money shall be refunded to Buyer unless either party elects to eliminate the excess in the variance by an appropriate adjustment at closing. If the notehoider requires (a) payment of an assumption fee in excess of S in A(I) above or S in A(2) above and Seller declines to pay such excess, or (b) an increase in the interest rate to more than 90 in A(i) above, or 9d in A(2) above, or (c) any other modification of the loan documents, Buyer may terminate this contract and the Earnest Money shall be refunded to Buyer. A vendor's lien and deed of trust to secure assumption shall be required which shall automatically be released on execution and delivery of a release by noteholder. If Seller is released from liability on any assumed note, the vendor's lien and deed of trust to secure assumption shall not be required. NOTICE TO BUYER: The monthly payments, interest rates or other terms of some loans may be adjusted by the lender at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and deeds of trust. NOTICE TO SELLER: Your liability to pay the note assumed by Buyer will continue unless you obtain a release of liability from the lender. If you are concerned about future liability, you should use the TREC Release of Liability Addendum. [] B. THIRD PARTY FINANCING: n (1) A third party first lien note of S (excluding any financed PMI premium), due in full in year(s), with interest not to exceed 576 per annum for the first year(s) of the loan. The loan shall be [] with ❑ without PM I. Initialed for identification by Buyer and Seiler TREC NO. 20 -2 EXHIBIT A N° 1 1 2 One to Four Family RC31d=121 F-3rnest Money Contract Concerning Page Two 10 -25 -93 (Address of Prooerty) C ('') A third oar-. second lien note of S due in full in vear(s), with interest not to exce r To Der atmurz for zhe first yesns) of the loan. G C. TEXAS V=R.,L S' HOUSING ?ROGRZa-V :0AN: A Texas Veterans' Housing Assistance Program Loan i the P-ogmizi Lzan i or S for a period of at least years at the interest rate estaaiished by the 7-:as V:: ens' _ 3nd Board at the time of .losin,. ❑ D. SELLER FINANCING: A' promissory note from Buyer to Stiller of S besr, ro 0 interest per annum. secured by vendor's and deed of trust liens, 'in accordance with the te-. s and conditions set `or-.h in the attached TREC Seller Financing Addendum. If an owner policy of title insurance is furnished. Buyer shall furnish Seller with a mortgagee policy of title insurance. ❑ E. CREDIT APPROVAL ON ASSUMPTION OR SELLER FINANCING: Within days after the effective date of this contract, Buyer shall deliver to Seller ❑ credit report ❑ verification of employment, including salary ❑ verification of funds on deposit in financial institutions ❑ current financial statement to establish Buyer's creditworthiness for assumption approval or seller financing and ❑ If Buyer's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Buyer within 5 days after expiration of the time for delivery, and the Earnest Money shall be paid to Seller. If this contract is not so terminated, Seller shall be deemed to have accepted Buyer's credit. If the documentation is timely delivered, and Seller determines in Seller's sole discretion that Buyer's credit is unacceptable, Seller may terminate this contract by notice to Buyer within 5 days after expiration of the time for delivery and the Earnest Money shall be refunded to Buyer. If Seiler does not so terminate this contract, Seller shall be deemed to have accepted Buyer's credit. Buyer hereby authorizes any credit reporting agency to furnish to Seller at Buyer's sole expense copies of Buyer's credit reports. Within days after the effective date of this contract Buyer shall apply for all third party financing or noteholder's approval of any assumption and shall make every reasonable effort to obtain financing or assumption approval. Financing or assumption approval shall be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender's financial conditions (those items relating to Buyer's ability to qualify for assumption approval or a loan). If Financing (including any financed PMI premium) or assumption approval is not obtained within days after the effective date hereof, this contract shall terminate and the Earnest Money shall be refunded to Buyer. Each note to be executed hereunder shall be secured by vendor's and deed of trust Iiens. S. EARNEST MONEY: Buyer shall deposit 5 100.00 as Earnest Money with (Address), as Escrow Agent, upon execution of this contract by both parties. C] Additional Earnest Money of 5 shall be deposited by Buyer with Escrow Agent on or before 19 . If Buyer fails to deposit the Earnest Money as required by this contract, Buyer shall be in default. 6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at Seller's expense an Owner Policy of Title Insurance (the Title Policy) issued by (the Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions: (1) Restrictive covenants common to the platted subdivision in which the Property is located. (2) The standard printed exception for standby fees, taxes and assessments. (3) Liens created as part of the financing described in Paragraph 4. (4) Utility easements created by the dedication deed or plat of the subdivision in which the Property is located. (5) Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing. (6) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements. (7) The standard printed exception as to marital rights. (8) The standard printed exception as to waters, tidelands, beaches, streams, and related matters. Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for Title Insurance (the Commitment) and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions. Seller authorizes the Title Company to trail or hand deliver the Commitment and related documents to Buyer at Buyer's address shown below. If the Commitment is not delivered to Buyer within the specified time, the time for delivery shall be automatically extended up to 15 days. Buyer shall have 5 days after the receipt of the Commitment to object in writing to matters disclosed in the Commitment. Buyer may object to existing building and zoning ordinances and items 6(A)(1) through (8) above if Buyer determines that any such ordinance or items prohibits the following use or activity: Initialed for identification by Buyer //4 and Seller TREC NO. 20 -2 N2 1 12 One to Four Family Residential Eamcst Money Contract Concerning Page Three 10 -2-5-93 (Address of Progeny) ® B. SURVEY R QUIRED: (Check one box oniv) (1) Within days after Buyer's rec_iot or a survey piat unishcd to a third -party leader at Buyer's expense. Buyer may obiec: in writhe to any matter shown on tlne plat which cottstimuzs a defe_: Or cacsmbrance to title. (2) Within In days after the e..-. -=ve date of unis cont-,ac:. Buv_r may obie-: in writing to anv matter which constitutes a defect or encumorance to title shown on a survey piat obtained by Buyer at Buyer's expense. The survey shall be made by a Re,_nstered Professionai Land Sur,,eyor acceptaoic to tite :itie comoanv and anv leader. The plat shall: (a) identify the Property by metes and bounds or piaaed lot description: (bt show that :he survey was grade and staked on the ground With corners permanently marked: (c) set forth the dimensions of the property: (d) show the location of all improvements, highways, streets, roads, railroads, rivers, creeks or other waterways, fences, easements and rights of way on the Property ; (e) show any discrepancies or conflicts in boundaries, any visible encroachments, and any portion of the Property lying within the 100 year floodplain as shown on the current Federal Emergency Management Agency map; and (f) contain the surveyor's certificate that the survey as shown by the plat is true and correct. Utility easements created by the dedication deed and plat of the subdivision in which the Property is located shall not be a basis for objection. Buyer's failure to object under Paragraph 6A or 6B within the time allowed shall constitute a waiver of Buyer's right to object; except that the requirements in Schedule C of the Commitment shall not be deemed to have been waived. If objections are made by Buyer or any third party lender, Seller shall cure the objections within 15 days from the date Seiler receives them and the Closing Date shall be extended as necessary. If objections are not cured by the extended Closing Date, this contract shall terminate and the Earnest Money shall be refunded to Buyer unless Buyer elects to waive the objections. NOTICE TO SELLER AND BUYER: (1) Broker advises Buyer to have an Abstract covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer's choice due to the time limitations on Buyer's right to object. (2) If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 50 of the Texas Water Code requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract. (3) Buyer is advised that the presence of wetlands, toxic substances including lead -base paint or asbestos and wastes or other environmental hazards or the presence of a threatened or endangered species or its habitat may affect Buyer's intended use of the Property. If Buyer is concerned about these matters, an addendum either promulgated by TREC or required by the parties should be used. (4) If the Property adjoins and shares a common boundary with the tidally influenced submerged lands of the state, Section 33.135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included in the contract. An addendum either promulgated by TREC or required by the parties should be used. 7. PROPERTY CONDITION. A. SELLER'S DISCLOSURE OF PROPERTY CONDITION (the 'Notice')(Section 5.008 Property Code)(check one box only): ❑ (1) Buyer has received the Notice. (2) Buyer has not received the Notice. Within 10 days after the effective date of this contract. Seller shall deliver the notice to Buyer. If Seller fails to deliver the Notice within the time allowed. Buyer may terminate: this contract within three days after the time for delivery of the Notice. If Seller timely delivers the Notice, Buyer may terminate this contract for any reason within seven days after Buyer receives the Notice. B. REQUIRED REPAIRS OR INSPECTIONS. (Check one box only): ❑ (I) Buyer accepts the Property in its present condition. Buyer shall pay for any repairs designated by a lender. [j(I (2) Buyer requires the completion of any repairs designated by a lender and the following repairs: /v ( � ❑ (3 ) Buyer requires the com leton of any repairs designated by a lender and any repairs designated by Buyer pursuant to the attached Property Cionditon Addendum. Buyer shall pay for inspections, reinspections, reports and Certr f lC7I -N. C. PAYMENT FOR TREATMENT OR REPAIRS. Subject to the limitations set out below. Seller shall pay for any treatment or repairs required by the contract, any lender and any Property Condition Addendum. Seller is not obligated to pay more than S N/A for treatment and repairs resulting from termites or other wood - destroying insects or to pay more than S N /A for all other repairs. Seller shall also pay for turning utilities on for inspections and reinspections. D. BUYER'S CHOICES. After Seller receive,; all inspection reports and repair designations made by Buyer or any lender pursuant to 78(2) or 78(3), Seller shall notify Buyer within 7 days (1) of the costs of all required treatment and repairs and (2) whether Seller will pay the costs that exceed the amounts in 76. If Seller notifies Buyer that Seller will not pay the excess costs, Buyer may (1) pay the excess costs (2) accept the Property with the costs of treatment and repairs not to exceed the amounts in 7C (if permitted by any lender), or (3) terminate this contract and the Earnest Money shall be refunded to Buyer. Buyer shall notify Seller of Buyer's choice within 5 days after Buyer is notified Seiler will not pay the excess Costs. Buyer Initialed tier identilica(iun by Buyer __ anal Sellcr zZj) TREC NO. 20 -2 N_ 112 One to Fuur Family Residcntiai F-3nest honey Contract Cunc_ning Page Four 10- 25 -93 (Address of Prvvcnv) 8. 9. 10. 11. If Se!lcr does nor notice 3uver, Buver snail notify Seiler of 3uver's choice from the three alternatives Provided above within 12 days after Seller r- ec:ves ai. t- saccnon =jorts and r_pair a_st_- nations from 3uvcr and env lender. I%3uyer does nut natify Seller of Buyer's choice within the speri_tieu rime. Buyer srcl! acceor tree ?roar^ with the costs or treatmenr and re?uirs limired to the amounts stated in 7C. If the total cost of required treatment and repairs exceeds 5=c of the Saies ?rice and Scilc- azrecs to pay :he :otai _ost. 9uye- may (1) accept the property with all required tratment and repairs. or (?) te. ^.mate this contmc- ana me -mLst Money snail be refunded to Buyer. Buyer shall notify Seller of Buyer's choice within 5 days after Seller notifies Buyer -hat Seiler will Pay all costs of treatment and repair. If buyer does not notify Seller of Buyer's choice within tine specified rime 3uver shall accept the Property with all required treatment and repairs. E. COMPLETION OF TREATMENT OR REPAIRS. Seller shall complete required or agreed treatment and repairs prior to the Closing Date. If Seller fails to complete any required or agreed treatment or repairs. Buyer may do so; Seller shall be liable for the cost up to the maximum agreed amount which shall be deducted from the sales proceeds or collected from Seller at closing if necessary. Buyer may also exercise applicable remgddies provided in Paragraph 15. BROKERS' REPRESENTATION AND FEES: (Listing Broker) represents ❑ Seller only ❑ Seller and Buyer. Any other broker represents: Seller as Listing Broker's subagent; Buyer only as Buyer's agent. Brokers' fees shall be paid as specified by separate written agreements. CLOSING: The closing of the sale shall be on or before{- 3 / 19 98 , or within 7 days after objections to title and survey have been cured, whichever date is later (the Closing Date); however, iffitrancing or assumption approval has been obtained pursuant to Paragraph 4, the Closing Date shall be extended up to 15 days only if necessary to comply with lender's closing requirements (for example, survey, insurance policies, property repairs, closing documents). If either party fails to close this sale by the Closing Date, the non - defaulting party shall be entitled to exercise the remedies contained in Paragraph 15. At closing Seller shall furnish tax statements or certi ficates showing no delinquent taxes, and a General Warranty Deed conveying good and indefeasible title showing no additional exceptions to those permitted in Paragraph 6. POSSESSION: Seller shall deliver possession of the Property to Buyer on .r1 nc i nQ tlato in its present or required repaired condition, subject to the dollar limitations of Paragraph 7, ordinary wear and tear excepted. Any possession by Buyer prior to closing or by Seller after closing that is not authorized by a temporary lease form promulgated by TREC or required by the Parties shall establish a landlord -tenant at sufferance relationship between the parties. Consult your insurance agent prior to change of possession as insurance coverage may be limited or terminated. SPECIAL PROVISIONS: [Insert only factual statements and business details applicable to this sale. A licensee shall not add to a promulgated earnest money contract form factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use. 22 TAC §537.11 (d).] 12. SALES EXPENSES: The following expenses shall be paid at or prior to closing: A. Appraisal fees shall be paid by Buyer B. The total of loan discount and buydown fees (including any Texas Veterans' Housing Assistance Program Participation Fee) shall not exceed _ N/A Fu of the loan of which Seiler shall pay the first N A o of the loan and Buyer shall pay the remainder. C. Seller's Expenses: Releases of existing liens, including prepayment penalties and recording Fees: release of Seller's loan liability; tax statements or certificates: preparation of deed: one -half of escrow fee: and other expenses stipulated to be paid by Seller under other provisions of this contract. D. Buyer's Expenses: Loan application, origination and commitment fees: loan assumption costs: preparation and recording of deed of trust to secure assumption; lender required expenses incident to new loan(s): (for example, PMI premium, preparation of loan documents, survey, recording fees, tax service and research fees, warehouse or underwriting fees, copies of restrictions and casements, amortization schedule, premiums for mortgagee title policies and endorsements required by lender, credit reports, photos: required premiums for Flood and hazard insurance: required reserve deposit for insurance premiums and ad Initialed for identification by Buyer W>> and Seller TREC NO. 20 -2 N_ 112 One to Four Family Residential Earnest Money Contract Cuncerning Page Five 10 -3.93 (ALldreaa of Propeny) 13. 14. 15. 16. 17, 18. 19. 20. 21. valorem taxes: inter°$[ on all monthiv insrallment payment notes from date of disbursements to one month prior to dates of First mon[hiv payments: customary Program Loan costs for 3uye^ one -itaif of escrow fe_: and other expenses stipulated to be paid by Buyer under other provisions of -,.'its cont:ac -. E. PMI premium not toe -.z=d N/A shall be paid by 3uver. and ; paid in cash at closing j added to the amount of the loan or L ! paid as follows: F. If any sales expense exceeds the amount stated in this contract to be paid by tither parry, zither par-k• - -ay cc:-unate thas contract unless either parry agrees to pay such excess. In no event shall Buyer pay charges and fees expressly prohibited by the Texas Veteran's Housing Assistance Program or other government loan program regulations. PRORATIONS: Flood and hazard insurance premiums (excluding mortgage insurance), taxes for the current year, interest. maintenance fees, assessments and rents shall be prorated through the Closing Date. However, if a loan is assumed and the lender maintains an escrow account for the payment of taxes and insurance, the above items ❑ shall Q shall not be prorated. Whether or not proration are made, the escrow account shall be transferred to Buyer without any deficiency. If prorations are made Buyer shall reimburse Sailer for the amount in the transferred account. If proration are not made, the escrow account shall be transferred to Buyer without reimbursement to Seller. If a transfer is permitted by the insurance carrier, the insurance policy in force Q shall M shall not be transferred to Buyer. If the insurance policy in force is not transferred, Buyer shall pay the premium for a new policy. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller is unable to do so without fault, Buyer may either (a) terminate this contract and the Earnest Money shall be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date shall be extended as necessary or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds. Provisions of the Texas Property Code to the contrary shall not apply. DEFAULT: If Buyer fails to comply with this contract, Buyer shall be in default, and Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money as liquidated damages, thereby releasing both parties from this contract. If Seller is unable without fault to make any non - casualty repairs or deliver the Commitment within the time allowed, Buyer may either terminate this contract and receive the Earnest Money as the sole remedy or extend the time for performance up to 15 days and the Closing Date shall be extended as necessary. If Seller fails to comply with this contract for any other reason, Seller shall be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money, thereby releasing both parties from this contract. ATTORNEY'S FEES: If Buyer, Seller, Listing Broker, Other Broker or Escrow Agent is a prevailing party in any legal proceeding brought under or with relation to this contract, such party shall be entitled to recover from the non - prevailing party all costs of such proceeding and reasonable attorney's fees. ESCROW: The Earnest Money is deposited with Escrow Agent with the understanding that Escrow Agent is not (a) a party to this contract and does not have any liability for the performance or non - performance of any party to this contract, (b) liable for interest on the Earnest Money or (c) liable for any loss of Earnest Money caused by the failure of any financial institution in which the Earnest Money has been deposited unless the financial institution is acting as Escrow Agent. If either party makes demand for the payment of the Earnest Money, Escrow Agent has the right to require from all parties and brokers a written release of liability of Escrow Agent for disbursement of the Earnest Money. Any refund or disbursement of Earnest Monty under this contract shall be reduced by the amount of unpaid expenses incurred on behalf of the party receiving the Earnest Money, and Escrow Agent shall pay the same to the creditors entitled thereto. At closing, the Earnest Money shall be applied first to any cash down payment, then to Buver's closing costs and any excess refunded to Buyer. Demands and notices required by this paragraph shall be in writing and delivered by hand delivery or by certified mail, return receipt requested. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens. assessments, Uniform Cornmercial Code or other security interests against the Property which will not be satisfied out of the Sales Price unless securing payment of any loans assumed by Buyer and (b) assumed loans will be without default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the Earnest Money shall be refunded to Buyer. All representations contained in this contract and an agreement for mediation shall survive closing. NOTICES: All notices shall be in writing and effective when mailed to or hand - delivered at the addresses shown below. FEDERAL TA`{ REQUI EiVIENT: If Seller is a 'foreign person% as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a 'foreign person', then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require Fling written reports if cash in excess of specified amounts is received in the transaction. DISPUTE RESOLUTION: It is the policy of the State of Texas to encourage the peaceable resolution of disputes through alternative dispute resolution procedures. The parties are encouraged to use an addendum approved by TREC to subrnit to Initialed for identification by Buyer M ; and Seller TREC NO. 20-2 N0- 1 12 One to Four Fancily Residential Earnest Money Contract Concerning Page Six 10.25 -93 (Address of Property) ' mediation disputes which cannot be resolved in good faith through informal discussion. 22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a pan of this contract are (list): 23. CONSULT YOUR ATTORNEY: Brokers cannot give legal advice. This is intended to be a legally binding contract. READ IT CAREFULLY. If you do not understand the effect of this contract, consult your attorney BEFORE signing. Buyer's Seller's Attorney: Attorney: EXECUTED in multiple originals the day of 19 (THE EFFECTIVE DATE). (BR R: FILL N THE DATE OF FINAL ACCEPTANCE AND THE PARTIES' DRESSES.) Seller Buy C,+5 eggs Seller =Sal#w Buyer �'�� 1�/sr�.wo�� 7> -�a►o � /�a;,�.,., Y1a -2c7� �yo � ��,l�l Sfi. , l�-., �rr� y�� -t: Sao Seneer kddress Phone No. - BeHer§ Address Ph uyer s The form of this contract has been approved by the Texas Real Estate Commission. Such approval relates to this contract form only. No representation is made as to the legal validity or adequacy of any provision in any specific transaction. It is not suitable for complex transactions. Extensive riders or additions are not to be used. (10 -93) TREC NO. 20 -2. This form replaces TREC NO. 20 -1. AGREEMENT BETWEEN BROKERS Listing Broker agrees to pay Broker, a fee of of the total sales price when the Listing Broker's fee is received. and directed to pay Other Broker from Listing Broker's fee at closing. Other Broker By Other Broker's Address License No. Listing Broker Phone No By: Listing Broker's Address me No. Other Escrow Agent is authorized License No. Phone No. RECEIPT Receipt of 0 Contract and O S Earnest Money in the form of is acknowledged. Escrow Agent: By: Date: 19 Address City Texas Zip Code TREC NO. 20 -2 N_ 112 It1.35 -9J ONE TO FOUR FAMILY RESIDENTIAL EARNEST MONEY CONTRACT (RESALE) ALL CASH, ASSUMPTION, THIRD PARTY CONVENTIONAL OR SELLER FINANCING PROiCULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) NOTICE: Not For Use For Condominium Transactions 1. PARTIES: Jen i a l L_uketl (Seller) agrees to sell and convey to ThP City of Baytown (Buyer) and Buyer agrees to buy from Seller the property described below. 2. PROPERTY: Lot 10 Block 1 Lincoln Cedar (Section 1 ) Addition, City of Rav_t_own _ „_, „_._ _ „__,_ County. Texas, known as 119 i inc:oln Cedar Dr (Address), or as described on attached exhibit, together with the following items, if any: curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall -to -wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennae and satellite dish with controls, permanently installed heating and air conditioning units and equipment, window air conditioning units, built -in security and fire detection equipment, lighting and plumbing fixtures, water softener, built -in kitchen equipment, garage door openers with controls, built -in cleaning equipment, all swimming pool equipment, shrubbery, permanently installed outdoor cooking equipment, built -in fireplace screens and all other property owned by Seller and attached to the above described real property except the following property which is not included: All property sold by this contract is called the "Property.” The Property C] is 0 is not subject to mandatory membership in an owners' association and its assessments and requirements. 3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer .. ............................... S ri 100.00 B. Sum of all financing described below (excluding any private mortgage insurance (PMII premium) . S () C. Sales Price (Sum of A and B) ............ ............................... S 5 Ion n-Q 4, FINANCING: The portion of Sales Price not payable in cash shall be paid as follows: (Check applicable boxes below) E] A. ASSUMPTION: C] (1) Buyer shall assume the. unpaid principal balance of a first lien promissory note payable to which unpaid balance at closing will be S The total current monthly payment including principal, interest and reserve deposits is $ Buyer's initial payment shall be the first payment due after closing. (2) Buyer shall assume the unpaid principal balance of a second lien promissory note payable to which unpaid balance at closing will be S Ths total current monthly payment including principal, interest and reserve deposits is S . Buyer's initial payment shall be the first payment due after closing. Buyer's assumption of an existing note includes all obligations imposed by the deed of trust securing the note. If the unpaid balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balances) stated above, the ❑ cash payable at closing0 sales price shall be adjusted by the amount of any variance; provided, if the total principal balance of all assumed loans varies in an amount greater than $350.00 at closing, either party may terminate this contract and the Earnest Money shall be refunded to Buyer unless either party elects to eliminate the excess in the variance by an appropriate adjustment at closing. If the noteholder requires (a) payment of an assumption fee in excess of S in A(I) above or S in A(2) above and Seller declines to pay such excess, or (b) an increase in the interest rate to more than % in A(I) above, or % in A(2) above, or (c) any other modification of the loan documents, Buyer may terminate this contract and the Earnest Money shall be refunded to Buyer. A vendor's lien and deed of trust to secure assumption shall be required which shall automatically be released on execution and delivery of a release by noteholder. If Seller is released from liability on any assumed note, the vendor's lien and deed of trust to secure assumption shall not be required. NOTICE TO BUYER: The monthly payments, interest rates or other terms of some loans may be adjusted by the lender at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and deeds of trust. NOTICE TO SELLER: Your liability to pay the note assumed by Buyer will continue unless you obtain a release of liability from the lender. If you are concerned about future liability, you should use the TREC Release of Liability Addendum. B. THIRD PARTY FINANCING: ❑ (l) A third party first lien note of S (excluding any financed PMI premium), due in full in year(s), with interest not to exceed '76 per annum for the first year(s) of the loan.. �Th/1 e loan shall he F] with E] without PM 1. Initialed for identification by Buyer 1 1�_ and Salley TREC NO. 20 -2 HIB(T B N_ 1 12 One to Four Family Residential Earnest Money Contract Concerning Pagt Two 10.25 -93 (Address of Property) ❑ (2) A third party second lien note of S , due in full in year(s), with interest not to exceed 17c per annum for the first year(s) of the loan. C. TEXAS VETERANS' HOUSING ASSISTANCE PROGRAM LOAN: A Texas Veterans' Housing Assistance Program Loan (the Program Loan) of 5 for a period of at least years at the interest rate established by the Texas Veterans' Land Board at the time of closing. D. SELLER FINANCING: A promissory note from Buyer to Seller of S bearing % interest per annum, secured by vendor's and deed of trust liens, in accordance with the terms and conditions set forth in the attached TREC Seller Financing Addendum. If an owner policy of title insurance is furnished. Buyer shall furnish Seller with a mortgagee policy of title insurance. ❑ E. CREDIT APPROVAL ON ASSUMPTION OR SELLER FINANCING: Within days after the effective date of this contract, Buyer shall deliver to Seller ❑ credit report ❑ verification of employment, including salary ❑ verification of funds on deposit in financial institutions ❑ current financial statement to establish Buyer's creditworthiness for assumption approval or seller financing and ❑ If Buyer's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Buyer within 5 days after expiration of the time for delivery, and the Earnest Money shall be paid to Seller. If this contract is not so terminated, Seller shall be deemed to have accepted Buyer's credit. If the documentation is timely delivered, and Seller determines in Seller's sole discretion that Buyer's credit is unacceptable, Seller may terminate this contract by notice to Buyer within 5 days after expiration of the time for delivery and the Earnest Money shall be refunded to Buyer. If Seller does not so terminate this contract, Seller shall be deemed to have accepted Buyer's credit. Buyer hereby authorizes any credit reporting agency to furnish to Seller at Buyer's sole expense copies of Buyer's credit reports. Within days after the effective date of this contract Buyer shall apply for all third party financing or noteholder's approval of any assumption and shall make every reasonable effort to obtain financing or assumption approval. Financing or assumption approval shall be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender's financial conditions (those items relating to Buyer's ability to qualify for assumption approval or a loan). If financing (including any financed PMI premium) or assumption approval is not obtained within days after the effective date hereof, this contract shall terminate and the Earnest Money shall be refunded to Buyer. Each note to be executed hereunder shall be secured by vendor's and deed of trust liens. 5. E�IRNEST A'iONEY: Buyer shall deposit S 100.00 as Earnest Money with Lr�G L. / /y< 5-t-nn t 4 L+ (Address), as Escrow Agent, upon execution of this contract by both parties. 0 Additional arrest Money of S shall be deposited by Buyer with Escrow Agent on or before 19 . If Buyer fails to deposit the Earnest Money as required by this contract, Buyer shall be in default. 6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at Seller's expense an Owner Policy of Title Insurance (the Title Policy) issued by (the Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions: (1) Restrictive covenants common to the platted subdivision in which the Property is located. (2) The standard printed exception for standby fees, taxes and assessments. (3) Liens created as part of the financing described in Paragraph 4. (4) Utility easements created by the dedication deed or plat of the subdivision in which the Property is located. (5) Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing. (6) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements. (7) The standard printed exception as to marital rights. (8) The standard printed exception as to waters, tidelands, beaches, streams, and related matters. Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for Title Insurance (the Commitment) and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions. Seller authorizes the Title Company to mail or hand deliver the Commitment and related documents to Buyer at Buyer's address shown below. If the Commitment is not delivered to Buyer within the specified time, the time for delivery shall be automatically extended up to 15 days. Buyer shall have 5 days after the receipt of the Commitment to object in writing to matters disclosed in the Commitment. Buyer may object to existing building and zoning ordinances and items 6(A)(1) through (8) above if Buyer determines that any such ordinance or items prohibits the following use or activity: Initiaied for identification by Buyer and Seller_'YJ ..LtJ1 TREC NO. 20 -2 Nc- 1 12 One io Four Family Residential Famest Money Contract Concerning Page Three 10 -25.93 (Address or Property) B. SURVEY REQUIRED: (Check one box only) ❑ (1) Within days after Buver's receipt of a survey plat fumished to a third -party lender at Buyer's expense, Buver may object in writing to any matter shown on the plat which constitutes a defect or encumbrance to title. 0 (2) Within 'In_ days after the effective date of this contract. Buyer may object in writing to any matter which constitutes a defect or encumbrance to title shown on a survey plat obtained by Buyer at Buyer's expense. The survey shall be made by a Registered Professional Land Surveyor acceptable to the title company and any lender. The plat shall: (a) identify the Property by metes and bounds or platted lot description: (b) show that the survey was made and staked on the ground with comers permanently marked: (c) set forth the dimensions of the property; (d) show the location of all improvements, highways, streets, roads, railroads, rivers, creeks or other waterways, fences, easements and rights of way on the Property ; (e) show any discrepancies or conflicts in boundaries, any visible encroachments, and any portion of the Property lying within the 100 year floodplain as shown on the current Federal Emergency Management Agency map; and (f) contain the surveyor's certificate that the survey as shown by the plat is- true and correct. Utility easements created by the dedication deed and plat of the subdivision in which the Property is located shall not be a basis for objection. Buyer's failure to object under Paragraph 6A or 6B within the time allowed shall constitute a waiver of Buyer's right to object; except that the requirements in Schedule C of the Commitment shall not be deemed to have been waived. If objections are made by Buyer or any third party lender, Seller shall cure the objections within 15 days from the date Seller receives them and the Closing Date shall be extended as necessary. If objections are not cured by the extended Closing Date, this contract shall terminate and the Earnest Money shall be refunded to Buyer unless Buyer elects to waive the objections. NOTICE TO SELLER AND BUYER: (1) Broker advises Buyer to have an Abstract covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer's choice due to the time limitations on Buyer's right to object. (2) If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 50 of the Texas Water Code requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract. (3) Buyer is advised that the presence of wetlands, toxic substances including lead -base paint or asbestos and wastes or other environmental hazards or the presence of a threatened or endangered species or its habitat may affect Buyer's intended use of the Property. If Buyer is concemed about these matters, an addendum either promulgated by TREC or required by the parties should be used. (4) If the Property adjoins and shares a common boundary with the tidally influenced submersed lands of the state, Section 33.135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included in the contract. An addendum zither promulgated by TREC or required by the parties should be used. 7. PROPERTY CONDITION. A. SELLER'S DISCLOSURE OF PROPERTY CONDITION (the "Notice ")(Section 5.008 Property Code)(check one box only): ❑ (1) Buyer has received the Notice. Q (2) Buyer has not received the Notice. Within 10 days after the effective date of this contract. Seller shall deliver the notice to Buyer. If Seller fails to deliver the Notice within the time allowed, Buyer may terminate this contract within three days after the time for delivery of the Notice. If Seller timely delivers the Notice, Buyer may terminate this contract for any reason within seven days after Buyer receives the Notice. B. REQUIRED REPAIRS OR INSPECTIONS. (Check one box only): ❑ (1) Buyer accepts the Property in its present condition. Buyer shall pay for any repairs designated by a lender. (2) Buyer requires the completion of any repairs designated by a lender and the following repairs: ❑ (3) Buyer requires the completion of any repairs designated by a lender and any repairs designated by Buyer pursuant to the attached Property Condition Addendum. Buyer shall pay for inspections, reinspections, reports and certificates. C. PAYMENT FOR TREATMENT OR REPAIRS. Subject to the limitations set out below, Seller shall pay for any treatment or repairs required by the contract, any lender and any Property Condition Addendum. Stiller is not obligated to pay more than S Nf A for treatment and repairs resulting from termites or other wood - destroying insects or to pay more than S _ NZA for all other repairs. Seller shall also pay for turning utilities on for inspections and reinspections. D. BUYER'S CHOICES. After Seller receives all inspection reports and repair designations made by Buyer or any lender pursuant to 7B(2) or 7B(3), Seller shall notify Buyer within 7 days (1) of the costs of all required treatment and repairs and (2) whether Seller will pay the costs that exceed the amounts In 7C. If Seller notifies Buyer that Seller will not pay the excess costs, Buyer may (1) pay the excess costs (2) accept the Property with the costs of treatment and repairs not to exceed the amounts in 7C (if permitted by any lender), or (3) terminate this contract and the Earnest Money shall be refunded to Buyer. Buyer shall notify Seller of Buyer's choice within 5 days after Buyer is notified Seller will not pay the excess costs. Buyer Initialed fur identilicaliun by Buyer pfi( � 1) —and Seller ` LlJ TREC NO. 20 -2 N° 1 12 One to Four Family Residential Ernest ?69oney Contract Co=erning Page Four 10 -25 -93 (Address of Propeny) If Seller does not notify Buyer, Buyer shall notify Seller of Buyer's choice from the three alternatives provided above within 12 days after Seller receives al: i- spection reports and repair designations from Buyer and any lender. If Buyer does nor notify Seller of Buver's choice within the specified rime. Buyer shall accept the Properr_v with the costs of treatment and repairs limited to the amounts stared in 7C. If the total cost of required treatment and repairs exceeds 5% of the Sales Price and Seller agrees to pay the total cost. Buyer may (I) accept the property with all required treatment and repairs, or (2) terminate this contract and the Earnest Nlonev shall be refunded to Buyer. Buyer shall notify Seller of Buyer's choice within 5 days after Seller notifies Buyer that Seller will pay all costs of treatment and repair. If Buyer does not notify Seller of Buyer's choice within the specified time Buyer shall accept the Property with all required treatment and repairs. E. COMPLETION OF TREATMENT OR REPAIRS. Seller shall complete required or agreed treatment and repairs prior to the Closing Date. If Seller fails to complete any required or agreed treatment or repairs, Buyer may do so; Seller shall be liable for the cost up to the maximum agreed amount which shall be deducted from the sales proceeds or collected from Seller at closing if necessary. Buyer may also exercise applicable remgd es provided in Paragraph 15. 8. BROKERS' REPRESENTATION AND FEES: / (Listing Broker) represents E] Seller only Q Seller and Buyer. Any other broker represents: ❑ Seller as Listing Broker's subagent; �S 4J, t t [] Buyer only as Buyer's agent. Brokers' fees shall be paid as specified by separate written agreements. �"� 9. CLOSING: The closing of the sale shall be on or before +1a_v�i-- rJ2�. 3 19 98 or within 7 days after objections to title and survey have been cured, whichever date is later (the Closing Date); however, iffmancing or assumption approval has been obtained pursuant to Paragraph 4, the Closing Date shall be extended up to 15 days only if necessary to comply with lender's closing requirements (for example, survey, insurance policies, property repairs, closing documents). If either party fails to close this sale by the Closing Date, the non - defaulting party shall be entitled to exercise the remedies contained in Paragraph 15. At closing Seller shall furnish tax statements or certificates showing no delinquent taxes, and a General Warranty Deed conveying good and indefeasible title showing no additional exceptions to those permitted in Paragraph 6. 10. POSSESSION: Seller shall deliver possession of the Property to Buyer on r 1 nc i pQ riAtp in its present or required repaired condition, subject to the dollar limitations of Paragraph 7, ordinary wear and tear excepted. Any possession by Buyer prior to closing or by Seller after closing that is not authorized by a temporary lease form promulgated by TREC or required by the Parties shall establish a landlord- tenant at sufferance relationship between the parties. Consult your insurance agent prior to change of possession as insurance coverage may be limited or terminated. 11. SPECIAL PROVISIONS: [Insert only factual statements and business details applicable to this sale. A licensee shall not add to a promulgated earnest money contract form factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use. 22 TAC §537.11 (d).] Sale is contingent upon: 1. City's acquisition of Lots 9 -13, Block 1 of Lincoln Cedars Section 1s 2. Establishment of no restriction prohibiting use as park 3. Environmental survey 12. SALES EXPENSES: The following expenses shall be paid at or prior to closing: A. Appraisal fees shall be paid by Buyer B. The total of loan discount and buydown fees (including any Texas Veterans' Housing Assistance Program Participation Fee) shall not exceed N/A % of the loan of which Seller shall pay the first N A % of the loan and Buyer shall pay the remainder. C. Seller's Expenses: Releases of existing liens, including prepayment penalties and recording fees; release of Seller's loan liability; tax statements or certificates; preparation of deed; one -half of escrow fee: and other expenses stipulated to be paid by Seller under other provisions of this contract. D. Buyer's Expenses: Loan application, origination and commitment fees; loan assumption costs; preparation and recording of deed of trust to secure assumption; lender required expenses incident to new loan(s): (for example, PMI premium,preparation of loan documents, survey, recording fees, tax service and research fees, warehouse or underwriting fees, copies of restrictions and easements, amortization schedule, premiums for mortgagee title policies and endorsements required by lender, credit reports, photos; required premiums for flood and hazard insurance: required reserve deposit for insurance premiums and ad Initialed for identification by Buyer IW47f and Seller_ -h _w, TREC NO. 20 -2 N° 112 t� One to Four Family Residential Earnest Money Contract Concerning Page Five 10 -15.93 (Address of Property) valorem taxes. interest on all monthly installment payment notes from date of disbursements to one month prior to dates of first monthly payments: customary Program Loan costs for Buyer: one -half of escrow fee: and other expenses stipulated to be paid by Buyer under other provisions of this contract. E. PMI premium not to exceed N/A shall be paid by Buyer, and ❑ paid in cash at closing [] added to the amount of the loan or n paid as follows: F. If any sales expense exceeds the amount stated in -this contract to be paid by either party, either party may terminate this contract unless either party agrees to pay such excess. In no event shall Buyer pay charges and fires expressly prohibited by the Texas Veteran's Housing Assistance Program or other government loan program regulations. 13. PRORATIONS: Flood and hazard insurance premiums (excluding mortgage insurance), taxes for the current year, interest, maintenance fees, assessments and rents shall be prorated through the Closing Date. However, if a loan is assumed and the lender maintains an escrow account for the payment of taxes and insurance, the above items (] shall jy shall not be prorated. Whether or not proration are made, the escrow account shall be transferred to Buyer without any de tciency. If prorations are trade Buyer shall reimburse Seller for the amount in the transferred account. If prorations are not made, the escrow account shall be transferred to Buyer without reimbursement to Seller. If a transfer'is permitted by the insurance carrier, the insurance policy in force Q shall ❑ shall not be transferred to Buyer. If the insurance policy in force is not transferred, Buyer shall pay the prerntum for a new policy. 14. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller is unable to do so without fault, Buyer may either (a) terminate this contract and the Earnest Money shall be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date shall be extended as necessary or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds. Provisions of the Texas Property Code to the contrary shall not apply. 15. DEFAULT: If Buyer fails to comply with this contract, Buyer shall be in default, and Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money as liquidated damages, thereby releasing both parties from this contract. If Seller is unable without fault to make any non - casualty repairs or deliver the Commitment within the time allowed, Buyer may either terminate this contract and receive the Earnest Money as the sole remedy or extend the time for performance up to 15 days and the Closing Date shall be extended as necessary. If Seller fails to comply with this contract for any other reason, Seller shall be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money, thereby releasing both parties from this contract. 16. ATTORNEY'S FEES: If Buyer, Seller, Listing Broker, Other Broker or Escrow Agent is a prevailing party in any legal proceeding brought under or with relation to this contract, such party shall be entitled to recover from the non - prevailing party all costs of such proceeding and reasonable attorney's fees. 17. ESCROW: The Earnest Money is deposited with Escrow Agent with the understanding that Escrow Agent is not (a) a party to this contract and does not have any liability for the performance or non - performance of any party to this contract, (b) liable for interest on the Earnest Money or (c) liable for any loss of Earnest Money caused by the failure of any financial institution in which the Earnest Money has been deposited unless the financial institution is acting as Escrow Agent. If either party makes demand for the payment of the Earnest Money, Escrow Agent has the right to require from all parties and brokers a written release of liability of Escrow Agent for disbursement of the Earnest Money. Any refund or disbursement of Earnest Money under this contract shall be reduced by the amount of unpaid expenses incurred on behalf of the party receiving the Earnest Money, and Escrow Agent shall pay the same to the creditors entitled thereto. At closing, the Earnest Money shall be applied first to any cash down payment, then to Buyer's closing costs and any excess refunded to Buyer. Demands and notices required by this paragraph shall be in writing and delivered by hand delivery or by certified mail, return receipt requested. 18. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, Uniform Commercial Code or other security interests against the Property which will not be satisfied out of the Sales Price unless securing payment of any loans assumed by Buyer and (b) assumed loans will be without default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the Earnest Money shall be refunded to Buyer. All representations contained in this contract and an agreement for mediation shall survive closing. 19. NOTICES: All notices shall be in writing and effective when mailed to or hand - delivered at the addresses shown below. 20. FEDERAL TAX REQUIREMENT: If Seller is a "foreign person ", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person ", then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction. 21. DISPUTE RESOLUTION: It is the policy of the State of Texas to encourage the peaceable resolution of disputes through alternative dispute resolution procedures. The parties are encouraged to use an addendum approved by TREC to submit to Initialed for identification by Buyer X �5S and Seller /_j LJ l TREC NO. 20 -2 N_ 112 One to Four Family Residential Earnest Money Contract Concerning Page Six 10 -25 -93 (Address of Property) mediation disputes which cannot be resolved in good faith through informal discussion. 22. AGREEMIENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a part of this contract are (list): 23. CONSULT YOUR ATTORNEY: Brokers cannot give legal advice. This is intended to be a legally binding contract. READ IT CAREFULLY. if you do not understand the effect of this contract, consult your attorney BEFORE signing. Buyer's Seller's Attorney: Attorney: EXECUTED in multiple originals the day of 19 (THE EFFECTIVE DATE). (BROKER: FILL IN TH P DATE OF FINAL ACCEPTANCE AND THE PARTIES' ADDRESSES.) J ��J Buyer Sel er Buyer Seller "T -t�t� Buyer's Address Phone No. Seller's Address Phone No. The form of this contract has been approved by the Texas Real Estate Commission. Such approval relates to this contract form only. No representation is made as to the legal validity or adequacy of any provision in any specific transaction. It is not suitable for complex transactions. Extensive riders or additions are not to be used. (10 -93) TREC NO. 20 -2. This form replaces TREC NO. 20 -1. AGREEMENT BETWEEN BROILERS Listing Broker agrees to pay , Other Broker, a fee of of the total sales price when the Listing Broker's fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker's fee at closing. 'Other Broker By Other Broker's Address License No. Listing Broker Phone No. By: Listing Broker's Address License No. Phone No. RECEIPT Receipt of ❑ Contract and ❑ S Earnest Money in the form of is acknowledged. Escrow Agent: By: Date: 19 Address City Texas Zip Code TREC NO. 20 -2 N_ 112 THE STATE OF 9/0,c cz- a * COUNTY OF v STATUTORY DURABLE POWER OF ATTORNEY I XNIAL LOCKETT, whose address is �, s and Social Security number being 4'L app int HAZEL WILLIAMS my agent to act for me in any law ul way with respect to the following initialed subjects: (A) real property transactions; (B) tangible personal property transactionsC (C) stock and bond transactions; 0 (D) commodity and option transactions; (E) banking and other financial institution transactions. (F) business operating transactions; (G) insurance and annuity transactions; (H) estate, trust, and other beneficiary transactions; (I) claims and litigation; (J) personal and family maintenance; (K) benefits from social security, Medicare, Medicaid, or other governmental programs or civil or military service; (L) retirement plan transactions; (M) tax matters; (N) ALL OF THE POWERS LISTED IN (A) THROUGH (M). YOU NEED NOT INITIAL ANY OTHER LINES IF YOU INITIAL LINE (N) . UNLESS YOU DIRECT OTHERWISE ABOVE, THIS POWER OF ATTORNEY IS EFFECTIVE IMMEDIATELY AND WILL CONTINUE UNTIL IT IS REVOKED. CHOOSE ONE OF THE FOLLOWING ALTERNATIVES BY CROSSING OUT THE ALTERNATIVE NOT CHOSEN: (A) This power of attorney is not affected by my subsequent disability or incapacity. (B) This power of attorney becomes effective upon my disability or incapacity. YOU SHOULD CHOOSE ALTERNATIVE (A) IF THIS POWER OF ATTORNEY IS TO BECOME EFFECTIVE ON THE DATE IT IS EXECUTED. IF NEITHER-(A) NOR (B) IS CROSSED OUT, IT WILL BE ASSUMED THAT YOU CHOSE ALTERNATIVE (A) . I agree that any third party who receives a copy of this document may act under it. Revocation of the durable power of attorney is not effective as to a third party until the third party receives actual notice of the revocation. I agree to indemnify the third party for any claims that arise against the third party because of reliance on this power of attorney. 0 Signed this _k day of , 1998. Aar J NIAL Ld K TT We the undersigned witnesses hereby attest that we are both above the age of eighteen years of age and that we have signed this foregoing power of attorney at the request of JENIAL LOCKETT, as her witnesses. Witness Address: THE STATE OF COUNTY OF / J4 >-, v P { Witness Ad ress: i I, a Notary Public in and for the County and State afore- said, do hereby certify that before me personally appeared JENIAL LOCKETT, known by me to be the identical person who is described in, whose name is subscribed to, and who signed and executed the foregoing instrument, and having first made known to her the contents thereof, he personally acknowledged to me that he signed and sealed the same on the date it bears as her true, free and voluntary act and deed for the uses, purposes and considerations therein set forth. Given under my hand and seal of office on this the day -of z�j 1998. N Y P C IN AND FOR rr THE STATE OF S -•'f v ONE TO FOUR FAMILY RESIDENTIAL EARNEST NIONEY CONTRACT (RESALE) -^� ALL CASH, ASSUMPTION, THIRD PARTY CONVENTIONAL OR SELLER FINANCING PROfULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) NOTICE: Not For Use For Condominium Transactions - 1. PARTIES: _ Clebphus Barnett ( Selier) agrees to sell -and convey to City of Baytown (Buyer) and Buyer agrees to buy from Seller the property described below. 2. PROPERTY: Lot 12 .. , Block 1 1 i nrnl n Cedar; (SP t i nn ) Addition, City of County, Texas, known as 21713 1 i nrp J n - Cerla r- nr (Address), or as described on attached exhibit, togetherwith the following items, if any: curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall -to -wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennae and -satellite dish with controls, permanently installed heating and air conditioning units and equipment, window air conditioning units, built -in security and fire detection equipment, lighting and plumbing fixtures, water softener, built -in kitchen equipment, garage door openers with controls, built -in cleaning equipment, all swimming pool equipment, shrubbery, permanently installed outdoor cooking equipment, built -in fireplace screens and all other property owned by Seller and attached to the above described real property except the following property which is not included: All property sold by this contract is called the "Property." The Property is [ is not subject to mandatory membership in an owners' association and its assessments and requirements. 3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer • • • • • • • • • • • • S q 1n On B. Sum of all financing described below (excluding any private mortgage insurance (PMIJ premium) $ C. Sales Price (Sum of A and B) ............ ............................... $ 5,1nn on 4.' FINANCING: The portion of Sales Price not payable in cash shall be paid as follows: (Check applicable boxes below). ❑ A. ASSUMPTION: E] (1) Buyer shall assume the unpaid principal balance of a first lien promissory note payable to _. which unpaid balance at closing will -- be S The total current monthly payment including principal, interest and reserve deposits is $ Buyer's initial payment shall be the first payment due after closing. ❑ (2) Buyer shall assume the unpaid principal balance of a second lien promissory note payable to which unpaid balance at closing will be S The total current monthly payment including principal, interest and reserve deposits is $ Buyer's initial payment shall be the first payment due after closing. Buyer's assumption of an existing note includes all obligations imposed by the deed of trust securing the note. If the unpaid balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balance(s) stated above, the El cash payable at closing[] sales price shall be adjusted by the amount of any variance; provided, if the total principal balance of all assumed loans varies in an amount greater than $350.00 at closing, either party may terminate this contract and the Eamest Money shall be refunded to Buyer unless either party elects to eliminate the excess in the variance by an appropriate adjustment at closing. If the noteholder requires (a) payment of an assumption fee in excess of S in A(I) above or $ in A(2) above and Seller declines to pay such excess, or (b) an increase in the interest rate to more than % in A(I) above, or % in A(2) above, or (c) any other modification of the loan documents, Buyer may terminate this contract and the Earnest Money shall be refunded to Buyer. A vendor's lien and deed of trust to secure assumption shall be required which shall automatically be released on execution and delivery of a release by noteholder. If Seller is released from liability on any assumed note, the vendor's lien and deed of trust to secure assumption shall not be required. NOTICE TO BUYER: The monthly payments, interest rates or other terms of some loans may be adjusted by the lender at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and deeds of trust. NOTICE TO SELLER: Your liability to pay the note assumed by Buyer will continue unless you obtain a release of liability from the lender. If you are concerned about future liability, you should use the TREC Release of Liability Addendum. ❑ B. THIRD PARTY FINANCING: F1 (1) A third party first lien note of S (excluding any financed NMI premium), due in full in year(s), with interest not to exceed % per annum for the first year(s) of the loan. The loan shall he ❑ with 0 %vithout I'MI. initialed for identification by Buyer / and Seller r 1 TREC N0, 20 -2 EXHIBIT C N_ 1 1 2 Onc to Four Family Rcsidcn6al Eamcst Money Contract Conccming (Address or Property) Page Two -'14 -25 -93 C] (2) A third party second lien note of S , due in full in year(s), with interest not to exceed 90 per annum for the first year(s) of the loan. C. TEXAS VETERANS' HOUSING ASSISTANCE PROGRAM LOAN: A Texas Veterans' Housing Assistance Program Loan (the Program Loan) of S for a period of at least years at the interest rate established by the Texas Veterans' Land Board at the time of closing. ❑ D. SELLER FINANCING: A promissory note from Buyer to Seller of $ bearing 90 interest per annum, secured by vendor's and deed of trust liens, in accordance with the terms and conditions set forth in the attached TREC Seller Financing Addendum. If an owner policy of title insurance is furnished, Buyer shall furnish Seller with a mortgagee policy of title insurance. E. CREDIT APPROVAL ON ASSUMPTION OR SELLER FINANCING: ' Within days after the effective date of this contract, Buyer shall deliver to Seller 0 credit report ❑ verification of employment, including salary ❑ verification of funds on deposit in financial institutions ❑ current financial statement to establish Buyer's creditworthiness for assumption approval or seller financing and O If Buyer's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Buyer within 5 days after expiration of the time for delivery, and the Earnest Money shall be paid to Seller. If this contract is not so terminated, Seller shall be deemed to have accepted Buyer's credit. If the documentation is timely delivered, and Seller determines in Seller's sole discretion that Buyer's credit is unacceptable, Seller may terminate this contract by notice to Buyer within 5 days after expiration of the time for delivery and the Earnest Money shall be refunded to Buyer. If Seller does not so terminate this contract, Seller shall be deemed to have accepted Buyer's credit. Buyer hereby authorizes any credit reporting agency to furnish to. Seller at Buyer's sole expense copies of Buyer's credit reports. Within days after the effective date of this contract Buyer shall apply for all third party financing or noteholder's approval of any assumption and shall make every reasonable effort to obtain financing or assumption approval. Financing or assumption approval shall be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender's financial conditions (those items relating to Buyer's ability to qualify for assumption approval or a loan). If financing (including any .financed PMI premium) or assumption approval is not obtained within days after the effective date hereof, this contract shall terminate and the Earnest Money shall be refunded to Buyer. Each note to be executed hereunder shall be secured by vendor's and deed of trust liens. /� EARNEST MONEY: B}�yer shall deposit S 100.00 as Earnest Money with Gt ( 7d✓vt� its 4�c.� at 1# 30G , /5` /SAN le c A, cam- (Address), as scrow Agent, upon execution of this contract by both parties. Additional Earnest Money of S shall be deposited by Buyer with Escrow Agent on or before 19 . If Buyer fails to deposit the Earnest Money as required by this contract, Buyer shall be in default. 6. TITLE POLICY AND SURVEY: [] A. TITLE POLICY: Seller shall furnish to Buyer at Seller's expense an Owner Policy of Title Insurance (the Title Policy) issued by (the Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer against Ioss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions: (1) Restrictive covenants common to the platted subdivision in which the Property is located. (2) The standard printed exception for standby fees, taxes and assessments. (3) Liens created as part of the financing described in Paragraph 4. (4) Utility easements created by the dedication deed or plat of the subdivision in which the Property is located. (5) Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing. (6) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements. (7) The standard printed exception as to marital rights., (8) The standard printed exception as to waters, tidelands, beaches, streams, and related matters. Within 20 days after the Title Company receives a copy of this contract, Seller shall famish to Buyer a commitment for Title Insurance (the Commitment) and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions. Seller authorizes the Title Company to mail or hand deliver the Commitment and related documents to Buyer at Buyer's address shown below. If the Commitment is not delivered to Buyer within the specified time, the time for delivery shall be automatically extended up to 15 days. Buyer shall have 5 days after the receipt of the Commitment to object in writing to matters disclosed in the Commitment. Buyer may object to existing building and zoning ordinances and items 6(A)(1) through (8) above if Buyer determines that any such ordinance or items prohibits the following use or activity: Initialed for identification by Buyer_(Z9'?2 and Seller. TREC NO. 20 -2 N2 112 One to Four Family Residential Earnest Money Contract Concerning Page Thece 10 -25 -93 (Address of Propeny) ❑ B. SURVEY REQUIRED: (Check one box only) (1) Within days after Buyer's receipt of a survey plat furnished to a third -party lender at Buyer's expense, Buyer may object in writing to any matter shown on the plat which constitutes a defect or encumbrance to title. ® (2) Within 3_ days after the effective date of this contract, Buyer may object in writing to any matter which constitutes a defect or encumbrance to title shown on a survey plat obtained by Buyer at Buyer's expense. The survey shall be made by a Registered Professional Land Surveyor acceptable to the title company and any lender. The plat shall: (a) identify the Property by metes and bounds or platted lot description; (b) show that the survey was made-and staked on the ground with corners permanently marked; (c) set forth the dimensions of the property; (d) show the location of all improvements, highways, streets, roads, railroads, rivers, creeks or other waterways, fences, easements and rights of way on the Property ; (e) show any discrepancies or conflicts in boundaries, any visible encroachments, and any portion of the Property lying within the 100 year floodplain as shown on the current Federal Emergency Management Agency map; and (f) contain the surveyor's certificate that the survey as shown by the plat is true and correct. Utility easements created by the dedication deed and plat of the subdivision in which the Property is located shall not be a basis for objection. - Buyer's failure to object under Paragraph 6A or 6B within the time allowed shall constitute a waiver of Buyer's right to object; except that the requirements in Schedule C of the Commitment shall not be deemed to have been waived. If objections are made by Buyer or any third party lender, Seller shall cure the objections within 15 days from the date Seller receives them and the Closing Date shall be extended as necessary. If objections are not cured by the extended Closing Date, this contract shall terminate and the Earnest Money shall be refunded to Buyer unless Buyer elects to waive the objections. NOTICE TO SELLER AND BUYER: (1) Broker advises Buyer to have an Abstract covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer's choice due to the time limitations on Buyer's right to object. (2) If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 50 of the Texas Water Code requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract. (3) Buyer is advised that the presence of wetlands, toxic substances including lead -base paint or asbestos and wastes or other environmental hazards or the presence of a threatened or endangered species or its habitat may affect Buyer's intended use of the Property. If Buyer is concemed about these matters, an addendum either promulgated by TREC or required by the parties should be used. (4) If the Property adjoins and shares a common boundary with the tidally influenced submerged lands of the state. Section 33.135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included in the contract. An addendum either promulgated by 'TREC or required by the parties should be used. 7. PROPERTY CONDITION. A. SELLER'S DISCLOSURE OF PROPERTY CONDITION (the 'Notice ")(Section 5.003 Property Code)(check one box only): ❑ (1) Buyer has received the Notice. 1)� (2) Buyer has not received the Notice. Within �1(1 days after the effective date of this contract, Seller shall deliver the notice to Buyer. If Seller fails to deliver the Notice within the time allowed, Buyer may terminate this contract within three days after the time for delivery of the Notice. If Seller timely delivers the Notice, Buyer may terminate this contract for any reason within seven days after Buyer receives the Notice. B. REQUIRED REPAIRS OR INSPECTIONS. (Check one box only): ❑ (1) Buyer accepts the Property in its present condition. Buyer shall pay for any repairs designated by a lender. (3 (2) Buyer requires the completion of any repairs designated by a lender and the following repairs: O (3) Buyer requires the completion of any repairs designated by a lender and any repairs designated by Buyer pursuant to the attached Property Condition Addendum. Buyer shall pay for inspections, reinspections, reports and certificates. C. PAYMENT FOR TREATMENT OR REPAIRS. Subject to the limitations set out below, Seller shall pay for any treatment or repairs required by the contract, any lender and any Property Condition Addendum. Seller is not obligated to pay more than S _N/A _ for treatment and repairs resulting from termites or other wood - destroying insects or to pay more than $ _p( ( for all other repairs. Seller shall also pay for fuming utilities on for inspections and reinspections. D. BUYER'S CHOICES. After Seller receives all inspection reports and repair designations made by Buyer or any lender pursuant to 78(2) or 7B(3), Seller shall notify Buyer within 7 days (1) of the costs of all required treatment and repairs and (2) whether Seller will pay the costs that exceed the amounts in 7C. If Seller notifies Buyer that Seller will not pay the excess costs. Buyer may (1) pay the excess costs (2) accept the Property with the costs of treatment and repairs not to exceed the amounts in 7C (if permitted by any lender), or (3) terminate this contract and the Earnest Money shall be refunded to Buyer. Buyer shall notify Seller of Buyer's choice within 5 days after Buyer is notified Seller will not pay the excess costs. Buyer Initialed life identification by Buyer a/ and Seller TREC NO, 20.2 N° 112 One to Four Family Residential Earnest Money Contract Concerning Page Four 10 -25 -93 (Address of Property) If Seller does not notify Buyer, Buyer shall notify Seller of Buyer's choice from the three alternatives provided above within 12 days after Seller receives a! g: inspection reports and repair designations from Buyer and any lender. If Buyer does riot notify Seller -of Buyer's choice within the specified tune, Buyer shall accept the Propetry with the costs of treatment and repairs limited to the amounts stated in 7C. If the total cost of required treatment and repairs exceeds 590 of the Sales Price and Seller agrees to pay the total cost, Buyer may (1) accept the property with all required treatment and repairs, or (2) terminate this contract and the Earnest Money shall be refunded to Buyer. Buyer shall notify Seller of Buyer's choice within 5 days after Seller notifies Buyer that Seller will pay all costs of treatment and repair. If Buyer does not notify Seller of Buyer's choice within the specified time Buyer shall accept the Property with all required rreatment and repairs. E. COMPLETION OF TREATMENT OR REPAIRS. Seller shall complete required or agreed treatment and repairs prior to the Closing Date. If Seller fails to complete any required or agreed treatment or repairs, Buyer may do so; Seller shall be liable for the cost up to the maximum agreed amount which shall be deducted from the sales proceeds or collected from Seller at closing if necessary. Buyer may also exercise applicable remedies provided in Paragraph 15. 8. BROKERS' REPRESENTATION AND FEES: N/A (Listing Broker) representsSeller only S211er and Buyer. Any other broker represents: ❑ Seller as Listing Broker's subagent; ❑ Buyer only as Buyer's agent. Brokers' fees shall be paid as specified by separate written agreements. 9.. CLOSING: The closing of the sale shall be on or before December. 31 19 98 or within 7 days - .after objections to title and survey have been cured, whichever date is later (the Closing Date); however. iffinancing or assumption approval has been obtained pursuant to Paragraph 4, the Closing Date shall be extended up to 15 days only if necessary to comply with lender's closing requirements (for example, survey, insurance policies, property repairs, closing documents). If either party fails to close this sale by the Closing Date, the non - defaulting party shall be entitled to exercise the remedies contained in Paragraph 15. At closing Seller shall furnish tax statements or certificates showing no delinquent taxes, and a General Warranty Deed conveying good and indefeasible title showing no additional exceptions to those permitted in Paragraph 6. I0. POSSESSION: Seller shall deliver possession of the Property to Buyer on rl nc i nn riata in its present or required repaired condition, subject to the dollar limitations of Paragraph 7, ordinary wear and tear excepted. Any possession by Buyer prior to closing or by Seller after closing that is not authorized by a temporary lease form promulgated by TREC or required by the Parties shall establish a landlord- tenant at sufferance relationship between the parties. Consult your insurance agent prior to change of possession as insurance coverage may be limited or terminated. 11. SPECIAL PROVISIONS: [Insert only factual statements and business details applicable to this sale. A licensee shall not add to a promulgated earnest money contract form factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use. 22 TAC §537.11 (d).] Sale is contingent upon: 1. City's acquisition of Lots 9 -12, Block 1 of Lincoln Cedars Section 1 2. Establishment of no restriction prohibiting use as park 12. SALES EXPENSES: The following expenses shall be paid at or prior to closing: A. Appraisal fees shall be paid by Buyer B. The total of loan discount and buydown fees (including any Texas Veterans' Housing Assistance Program Participation Fee) shall not exceed N /A - - - -90 of the loan of which Seller shall pay the first N/A % of the loan and Buyer shall pay the remainder. C. Seller's Expenses: Releases of existing liens, including prepayment penalties and recording fees; release of Seller's loan liability; tax statements or certificates; preparation of deed; one -half of escrow fee; and other expenses stipulated to be paid by Seller under other provisions of this contract. D. Buyer's Expenses: Loan application, origination and commitment fees; loan assumption costs; preparation and recording of deed of trust to secure assumption; lender required expenses incident to new loan(s): (for example, PMI premium, preparation of loan documents, survey, recording fees, tax service and research fees, warehouse or underwriting fees, copies of restrictions and easements, amortization schedule, premiums for mortgagee title policies and endorsements required by lender, credit reports, photos; required premiums for flood and hazard insurance; required reserve deposit for insurance premiums and ad Initialed for identification by Buyer and Seller TREC NO. 20 -2 N_ 112 One to Four Family Residential Earnest Ntoney Contract Concerning Page Five 10 -25 -93 (Address of Property) valorem taxes; interest on all monthly installment payment notes from date of disbursements to one month prior to dates of first monthly payments; customary Program Loan costs for Buyer; one -half of escrow fee; and other expenses stipulated to be paid by Buyer under other provisions of this contract. E. PMI premium not to exceed N/A shall be paid by Buyer, and ❑ paid in cash at closing added to the amount of the loan or ❑ paid as follows: F. If any sales expense exceeds the amount stated in this contract to be paid by either party, either party may terminate this contract unless either party agrees to pay such excess. In no event shall Buyer pay charges and fees expressly prohibited by - the Texas Veteran's Housing Assistance Program or other government loan program regulations. 13. PROBATIONS: Flood and hazard insurance premiums (excluding mortgage insurance), taxes for the current year, interest, maintenance fees, assessments and rents shall be prorated through the Closing Date. However, if a loan is assumed and the lender maintains an escrow account for the payment of taxes and insurance, the above items C] shall U shall not be prorated. Whether - or not prorations are made, the escrow account shall be transferred to Buyer without any deficiency. If prorations are made Buyer shall reimburse Seller for the amount in the transferred account. If prorations are not made, the escrow account shall be transferred to Buyer without reimbursement to Seller. If a transfer is permitted by the insurance carrier, the insurance policy in force - shall � . shall not be transferred to Buyer. If the insurance policy in force is not transferred, Buyer shall pay the premium for a new policy. ' 14. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller is unable to do so without fault, Buyer may either (a) terminate this contract and the Earnest Money shall be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date shall be extended as necessary or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds. Provisions of the Texas Property Code to the contrary shall not apply. 15. DEFAULT: If Buyer fails to comply with this contract. Buyer shall be in default, and Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money as liquidated damages, thereby releasing both parties from this contract. If Seller is unable without fault to make any non - casualty repairs or deliver the Commitment within the time allowed, Buyer may either terminate this contract and receive the Earnest Money as the sole remedy or extend the time for performance up to 15 days and the Closing Date shall be extended as necessary. If Seller fails to comply with this contract for any other reason, Seller shall be in default and Buyer may either. (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money, thereby releasing both parties from this contract. 16. ATTORINEY'S FEES: if Buyer, Seller, Listing Broker, Other Broker or Escrow Agent is a prevailing party in any legal proceeding brought under or with relation to this contract, such party shall be entitled to recover from the non - prevailing party all costs of such proceeding and reasonable attorney's fees. 17. ESCROW: The Earnest Money is deposited with Escrow Agent with the understanding that Escrow Agent is not (a) a party to this contract and does not have any liability for the performance or non - performance of any party to this contract, (b) liable for interest on the Eamest Money or (c) liable for any loss of Earnest Money caused by the failure of any financial institution in which the Eamest Money has been deposited unless the financial institution is acting as Escrow Agent. If either party makes demand for the payment of the Earnest Money, Escrow Agent has the right to require from all parties and brokers a written release of liability of Escrow Agent for disbursement of the Earnest Money. Any refund or disbursement of Earnest Money under this contract shall be reduced by the amount of unpaid expenses incurred on behalf of the party receiving the Earnest Money, and Escrow Agent shall pay the same to the creditors entitled thereto. At closing, the Earnest Money shall be applied first to any cash down payment, then to Buyer's closing costs and any excess refunded to Buyer. Demands and notices required by this paragraph shall be in writing and delivered by hand delivery or by certified mail, return receipt requested. 18. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, Uniform Commercial Code or other security interests against the Property which will not be satisfied out of the Sales Price unless securing payment of any loans assumed by Buyer and (b) assumed loans will be without default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the Earnest Money shall be refunded to Buyer. All representations contained in this contract and an agreement for mediation shall survive closing. 19. NOTICES: All notices shall be in writing and effective when mailed to or hand - delivered at the addresses shown below. 20. FEDERAL TAX REQUIREMENT: If Seller is a "foreign person", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person ", then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction. 21. DISPUTE RESOLUTION: It is the policy of the State of Texas to encourage the peaceable resolution of disputes through altemative dispute resolution procedures. The parties are encouraged to use an addendum approved by TREC to submit to Initialed for identification by Buyer / and Seller (s. , g TREC NO. 20 -2 N0- 112 One to Four Family Residential Earnest Money Contract Concerning Page Six 10 -25 -93 (Address of Property) mediation disputes which cannot be resolved in good faith through informal discussion. 2. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a part of this contract are (list): 23. CONSULT YOUR ATTORNEY: Brokers cannot give legal advice. This is intended to be a legally binding contract. READ IT CAREFULLY. If you do not understand the effect of this contract, consult your attorney BEFORE signing. Buyer's Seller's Attorney: Attorney: EXECUTED in multiple originals the day of 19 (THE EFFECTIVE DATE). (BRO R: FILL IN THE P,4TE OF FINAL ACCEPTANCE AND THE P TIES' ADDRESSES.) uyer Seller t Bu er Seller - .. yv7 Ruver's Address Phone No. Seller's Address Phone No. The form of this contract has been approved by the Texas Real Estate Commission. Such approval relates to this contract form only. No representation is made as to the legal validity or adequacy of any provision in any specific transaction. It is not suitable for complex transactions. Extensive riders or additions are not to be used. (10 -93) TREC NO. 20 -2. This form replaces TREC NO. 20 -1. AGREEMENT BETWEEN BROKERS Listing Broker agrees to pay , Other Broker, a fee of of the total sales price when the Listing Broker's fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker's fee at closing. Other Broker By: License No. Listing Broker By: Other Broker's Address Phone No. Listing Broker's Address License No. Phone No. RECEIPT Receipt of © Contract and O $ Earnest Money in the form of is acknowledged. Escrow Agent: By: Date: 19 Address City Texas Zip Code TREC NO. 20 -2 N° 112 12/07/88. 16:01 FAX 281 427 0864 Randall B Strong la 02 ONE TO FOUR FAMILY RESIDENTIAL EARNEST MONEY CONTRACT (RESALE) ALL CASH, ASSUMPTION, THIRD PARTY CONVENTIONAL OR SELLER FINANCING PROI«UI.GATED BY THE TEXAS REAL ESTATE COiN1IIII.SSION (TREC) NOTICE. Not For Use For Condominium Trar>sactions 1. PARTIES; Fqtatn of Waunic a Bell (seller) agrees to sell .and convey to city n RaytnWn - t (Buyer) and Suver agrees to buy from Seller the property described below. 2. PROPERTY: T.at_oA attarllarl , Block Lincoln Cedar (Section 1) Addition, City of _rui nwn _ County. Texas. ]mown as _N /p (Address), or as described on attached exhibit, together with the following items. if any: curtains and rods, draperies and rods, valances. blinds. window shades, scrums, shutters. awnings, wall -to -wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennae and satellite dish with controls, permanently installed heating and air conditioning units and equipment, window air conditioning units, built -in security and fire detection equipment, lighting and plumbing fixtures, water softener, built -in kitchen equipment, garage door openers with controls, built -in cleaning equipment, all swimming pool equipment, shrubbery, permanently installed outdoor cooling equipment, built -in firtplace screens and all other property owned by Seller and attached to the above described real property except the following property which is not included: All property sold by this contract is called the 'Property." The Property E] is ® is not subject to mandatory membership in an owners' &%ociation and its assessments and requirements. .3, SALES PRICE: A. Cash portion of Sales Price payable by Buyet .... ..............................S 16, 000.00 B. Sum of all financing dcsaibed below (excluding any private mortgage insurance [PMI] premium) S 0 C_ Sales Price (Sum of A and B) .............. ..............................S 11; ,nnn . On 4. FINANCING: The portion of Sales Price not payable in cash shall be paid as follows: (Check applicable boxes On A. ASSUMPTION: E] (1) Buyer shall assume the unpaid principal balance of a fast lien promissory note payable to' which unpaid balance at closing will be $ The total current monthly payment including principal, interest and reserve deposits is S Buyer's initial payment shall be the first payment due after closing. E] (2) Buyer shall ass, the unpaid principal balance of a second lien promissory note payable to which unpaid balance at closingwill be $ The total current monthly payment including principal, interest and reserve deposits is S _ Buyer's initial payment shall be the first payment due after closing. Buyer's assumption of an existing note includes all obligations imposed by the deed of trust securing the note - If the unpaid balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balance(s) stated above. the El cash payable at closing E] sales price shall be adjusted by the amount of any variance; provided, if the total Principal balance of all assumed loans varies in an amount greater than $350.00 at closing, either party may terminate this contract and the. Earnest Money shall be refunded to Buyer unless either party elects to eliminate the excess in the variance by an appropriate adjustment at closing. If the noteholder reguims (a) payment of an assumption fee in excess of S in A(I) above or S in A(2) above and Seller declines to pay such excess, or (b) an increase in the interest rate to more than % in A(1) above, or % in A(2) above, or (c) any other modification of the loan documents. Buyer may terminate this contract and the Earnest Money shall be refunded to Buyer. A vendor's lien and deed of trust to secure assumption shall be required which shall automatically be released on execution and delivery of a release by noteholder. If Seller is released from liability on any assumed note, the vendor's lien and deed of test to secure assumption shall not be required. NOTICE TO BUYER: The monthly payments. interest rates or other terms of some loans may be adjusted by the leader at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and deeds of trust. NOTICE TO SELLER: Your liability to pay the note assumed by Buyer will continue unless you obtain a release of liability from the lender. If you are concerned about future liability, you should use the TREC Release of Liability Addendum. B. THIRD PARTY FINANCING: (1) A third parry first lien now of $ (excluding any financed PM premium), duc in full in year(s), with interest not to exceed Sb per annum for tht first year(s) of the loan. The loan shall be Q with [] without PMI_ Initialed for identification. by Buyer and Seller TREC NO. 20-2 EXHIBIT D N° 112 12/07/98 16:01 FAX 281 427 0864 Randall B Strong (a 03 Qm a Fogs F*aWv n.-..a.ausl Fww=a MonVv Cantrsct C "='nn :_ Page Taro 10 -15 -93 i (Addtcw of Ptope"-) (') A china par. - sr-- ud lice note of S due in full in year(s), urich interdSE not to excmca S per atmum for :ere Elsa Pans) of the loan- C. TEXAS v1 r-- .LAN5• HOUSING A5- =L.%uNC= PROGRAM LOAN: A Teas Vatmzw* Hauling Assists = P-oerarg L M rthe L zany or 5 for a period of at least years at the iwe:�t rate ertabiishei by the T'-zas Vz' -ins' �d Board ac rite amt of closin_. D.' SELLER FLNANCLvG. A promissory note from Buyer to Seller of S bcaimg interest per annum. secured by vendor's and deed of trust liens. in ac tra=ce vim the terms and coniiiaons set :arm in the attached TREC Salley FiR�����g Addendum. If an ow=r policy of ude insurance is furnished. Buyer shall :imnisb 5dler with a tnortgagee policy of dtle insurance. E. CREDIT AFFROVAL. Old ASSUMPTION OR SEL.L.ER FINANCING: Within days afar the effective due of this contact, Buyer shall deliver to Seller ❑ credit report ❑ verification of employment, including salary ❑ verification of funds on deposit in financial institutions ❑ currant financial statement to establish Buyer's creditworthiness for anumption approval or seller financing and 0 If Buyer's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Buyer within 5 days after expiration of the time for delivery, and the Earnest Money shall be paid to Seller. If this contract is not so terminated, Seller shall be deemed to have accepted Buyer's credit. If the documentation is timely delivered, and Seller determines is Seller's sole discretion that Buyer's credit is unacceptable, Seller may terminate this contract by notice to Buyer within S days after expiration of the time for delivery and the Earnest Money shall be refunded m Buyer. If Seller does not so terminate this contract. Seller shall be deemed to have accepted Buyer's credit. Buyer hereby authorizes any credit reporting agency to furnish to Sd1er at Buyer's sole expense copies of Buyer's credit MPorts. Within . days after the effective date of this contract Buyer shall apply for all third party financing or noteholder's approval of any assumption and shall make every reasonable effort to obtain financing or assumption approval. Financing or assumption approval shall be deemed to have bees obtained when the leader determines that Buyer has satisfied all of lender's financial conditions (those items relating to Buyer's ability to qualify for assumption approval or a loan). If financing (:umluding any financed PMI premium) or assumption approval is not obtained within days after the effective data hereof, this contract shall terminate and the Earnest Money shall be refunded to Buyer. EAch note to be executed hereunder shall be secured by vendor's and deed of trust liens. S. EARNEST MONEY: Buyer shall deposit S 100.OQ g� Money with at (Address). as Escrow Agent, upon execution of this contra by both patties. [3 Additional Earnest Money of S shall be deposited by Buyer with Escrow Agent on or before 19 . If Buyer fails to deposit the Earnest Money as required by this concoct, Buyer shall be in default. 6. TITLE POLICY AND SURVEY: rl A. T= POLICY: Seller shall furnish to Buyer at Seller's expense an Owner Policy of Title Insurance (the Title Policy) issued by (the Title Company) in the amount of the Sales price, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and waing ordinances) and the following exceptions; (1) Restrictive covenants common to the platted subdivision in which the Property is located. (2) The standard printed exception for standby fees, tastes and assessments. (3) Liens crated as part of the financing described in Paragraph 4. (4) Utility easemerim created by the dedication deed or plat of the subdivision in which the Property is located. (5) Reservation or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing. (6) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements. () The standard printed exception as to marital rights. ; (8) The standard printed exception as to waters, tidelands, beaches. sw=ms, and related matters. Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for Title Ltuutsnce (the Comttlitment) and, at Buyer's expense. legible copies of restrictive covenants and documents evidencing exceptions in the Comtnim3cnt other than the standard printed exceptions. Seller authorises the Title Company to mail or hand deliver the Commitment and related documents to Buyer at Buyer's addreu shown below. If the Commitrneat is not delivered to Buyer within the specified time, the time' for delivery shall be automatically extended up to 15 days. Buyer shall have 5 days after the receipt of the Commitment to object in writing to matters disclosed in the Commiti=L Buyer may objet to • existing building and zoning ordinances uvl items 6(A)(1) through (8) above if Buyer determines that any such ordinance or items prohibits the following user or acriviry: Itaitialcd for identification by Buyer and Seller TREC NO. 20-2 NS 112 :7 C: 12/07/98 16:01 F.0 281 427 0864 Randall B Strong 1204 (]tae m Four r-amily a .M..i,.... ;i G-ffuai Macey Canzmct cua:amko Page Throes ta25-93 (Addrsrs or Property) © B. SURVEY REOL IE : f Leek one box only) (1) within days ante: auver's receipt of a survey plat furnished to a third -party lender at Buyer's expense. Buyer talv.00t : a umtinr to'any manta snows on the plat whic3 coumvires a dEie~ or encumbrance to title. Q (2) within', days after'thc effe=ve date of leis :ba=se-- Buyer may obit=: in %whine to any macter which constitutes a actect or =cumoriacc to title saowm on a survey piss ootaaned by Buyer at Buyer's expeage_ The survey shall be made by a Registered Professional Lind Surveyor ==-- abic to :he tulc Buyer cad any lender. Ina plat shall: (a) identify the Property by metes and bounds or planed lot description: (br show that the survey %was made and staked on the ground witlr comers permanently marked: (c) set forth the dimeasicas of the property: ('d) show the location of all improvements, highways, streets. roads, railroads. rivers, creeks or other w;uerways. fences. e2semertts and rights of way an the Property : (eT show any discrepancies or conflicts is boundaries, any visible encroachments. and any portion of the Property lying within the 100 year floodplain as shown on the current Federal Emergency Management Agency map: and (f) contain the surveyor's certificate that the survey as shown by,the plat is true and correct. Utility e&wments created by the dedication dew and plat of the subdivision in which the Property is located shall not be a basis for pbjec6on. Buyer's failure to object under Paragraph 6A or 6B within the Arne allowed shall constitute a waiver of - Buyer's right to object: except that the requirements in Schedule C of the Commitment shall not be deemed to have been waived. If objections are trade by Buyer or any third parry lender, Seller shall cure the objections within 15 days from the date Seller receives them and the Closing Date shall, be extended as necessary. If objections are not cured by the extended Closing Date, this contract shall terminate and the Earnest Money shall be refunded to Buyer unless Buyer elects to waive the objections. NOTICE TO SELLER AND BUYER: (1) Broker advises Buyer to have an Abstract covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a Tide Policy. If a Tide Policy is furnished. the Commitment should be promptly reviewed by an attorney of Buyer's choice due to the time limitations on Buyer's right to object. (2) If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services. Chapter 50 of the Texas Water Code requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee• of the district prior to final execution of this contract (3) Buyer is advised that the pmsence of wetlands, toxic substances including lead -base paint or asbestos and wastes or other enviroa=rital hanrds or the presence of a threatened or endangered species or its habirat may affect Buyer's intended use of the Property. If Buyer is concerned about these matters, an addendum either promulgated by TREC or required by the parties should be used. (4) If the Property adjoins and shares a common boundary with the tidally influenced submersed lands of the state. Section 33.135, Texas Natural Resources Code. requires a notice regarding coastal area property to be included in the contract. An addendum either promulgated by TREC or required by the parties should be used. 7. ' PROPERTY CONDITION. A. SELLER'S p1SCLOSURE OF PROPERTY CONDITION (the 'Notice')(Section 5.008 Property Code)(check one box only): 0(l) Buyer has received the Notice. i� (2) Buyer has not received the Notice. Within 10 days after the effective date of this contract. Seller shall deliver the notice to Buyer. if Seller fails to deliver the Notice within the time allowed. Buyer may terminata this contract within three days after the time for delivery of the Notice. If Seller timely delivers the Notice. Buyer may terminate this contract for any reason within seven days after Buyer receives the Notice. B_ REQUIRED REPAIRS OR 1NSPEC7fONS. (Check one box only): ❑ (1) Buyer accepts the Property in its present condition. Buyer shall pav for any repairs designated by a lender. (2) Buyer requires the completion of any repairs designated by a lender and the following repairs: ❑ (3) . Buyer requires the completion of any repairs designated by a leader and any repairs designated by Buyer pursuant to the aa2chcd Property Condition Atddeatdum. Buyer shall pay for inspections. reinspections, reports and certificates. C. PAYMENT FOR TREATMENT OR REPAIRS. Subject to the limitations set out below. Seller shill pay for any treatment or reNirs required by the contract, any lender and any Property Condition Addendum. Seller is not obligated to pay more than S N jA for treatment and repairs resulting from termites or other wood-destraying insects or to pay morn than S NLA for all other repairs. Seller shall also pay for turning utilities on for inspections cad reinspections. D. BUYER'S CHOICET Afar Seller receives all inspcaion reports and repair designations mane by Buyer or nay leader pursuant to 78(2) or 78(3), Seller shall notify Buyer within 7 days (1) of the costs of all rrquuad treatment and repairs and (2) whether Seller will ray the costs that exceed the amounts in 7C. If Seller notifies Buyer that Seller will not pay the excess costs. Buyar nwy (1) pity the excess casts (2) accept the Property with the costs of creatinent and repairs not to axcrosl the amounts in 7C (if permitted by any lender), or (3) terminate this contract and the Earricm Money shall be refunded to Buyer. Buyer shall tu►tify Seller of Buyer's choice within 5 Clays rafter Buyer is nonfterd Scller will not pay the excess casts. Buyer lnitialal for i.lemitit.ition by Buyer and 501cr iKizt- Nu. 1V-L N0- 112 12/07/88 16:01 FAX 281 427 0864 Randall B Strong 1205 Om: to Four Family it.:sidcraal Fiscal `lone Cuoiracr Cuoceaiae Page Four 10-15-93 (Addma of Progeny) If Scllar does not aoufv 3uve -. Buve- wall notify Salk of Buyer's choice from the thre= alternatives providex above Within 12 days aftt- 5ellar t --- -Ives ai_ L sn=1on r_oorts and re=r adSIZ t3ons from 3uver and any ttncicr. If Bw er does rwr notify Seller of Buyer s choice witirin the spec nets rime. Buyer snail accept :tie Prvvern- wrin rite costs of treatment and repairs limited to the amounts scared in 7C. If the total cost of required treatment and repairs exc-zds 5 =v of the 5iies '- ice wad S -ilc a_;-zcz to pay :hc ;oral =sc. Buyer may (1) accept the property with all required treacment and repairs. or f21 tenmmate this concac_ and :.Ile = 1rl=st Money siudl be refunded to Buyer. Buyer shall notify Sailer of Buver's choice within S days after Seller notifies Buyer :au Sc :lc: wli1 pay all costs of treatment and repair. if Ewer does nor notes Seller of Buyer's choice within the specrned lime Buyer shall accept the Property with all required treatment and repairs. i E. COMPLI~iION OF TREATMENT OR REPAIRS. Seller shall complete required or agreed treatment and repairs prior to the Closing Date. If Seller fails to complete any required or agreed treatment or repairs. Buyer may do so: Seller shall be liable for the cost up to the maximum agreed amount which shall be deducted from the sales proceeds or collected from Seller at closing if necessary. Buyer may also exercise applicable remedies provided in Paragraph 15. S.- BROKERS' REPRESENTATION AND FEES: ni�AH (listing Broker) represents L3 Seller only Seller and Buyer. Any other broker represents Seller as listing Broker's subagent; Buyer only as Buyer's agent. . Brokers' fees shall be paid as specified by separate written afire :rrhents. 9. CLOSING: The closing of the sale shall be on or before 19 , or within 7 days after objections to title and survey have been cum, whichever date is later (the Closing Date); however, iiffurancing or assumption approval has been obtained purruaw to Paragraph a, the Closing Date shall be extended up to 15 .days only if necessary to comply with leader's closing requirements (for example, survey. insurance policies, property repairs, closing docurricnts). If either parry fails to close this sale by the Closing Date, the non - defaulting party sball be entitled to exercise the remedies contained in Paragraph 15. At closing Seller shall furnish tax statements or certificates showing no delinquent taxes. and a General Watranry Deed conveying good and indefeasible title showing no additional exceptions to those permitted in Paragraph 6. M POSSESSION: Seller shall deliver possession of the Property to Buyer on in its present or required repaired condition, subject to the dollar limitations of Paragraph 7, ordinary wear and tear excepted. Any poss-ssion by Buyer prior to closing or by Seller after closing that is not auchorizrd by a temporary lease form promulgated by TREC or required by the Parties shall establish a landlord- teaant at sufferance relationship between the parties. Consult your insurance agent prior to change of possession as insurance coverage may be limited or terminated. I.I. SPECIAL PROVISIONS: [Insert only factual statements and business details applicable to this sale. A licensee shall not add to a promulgated earnest: money contract form factual statements or business details for Which a contract addendum, lease or other form has been promulgated by TREC for mandatory use. 22 TAC 1537.11 (a).) Sale is contingent upon: Environmental Survey 12. SALES EXMNSES: The following experues shall be paid at or prior m closing: A. Appraisal fees shall be paid by Buyer B. The total of loan discount and buydown fats (including any Texas uatersns' Housing Assistance Program Participation Fee) shall not exceed N/A % of this loan of which Seller shall pay the first N/A 56 of the loan and Buyer shall pay the remainder. C. Seller's Expenses: Releases of existing Iims, including prrpayrnent penalties and recording fees: release of Seller's loan liability; tax statements or certificates. preparation of deed: one -half of escrow fee: and other expenses stipulated to be paid by Seller under other provisions of this contract. D. Buyer's Expenses: Loan application, origination and coattnitment fees: loan assumption costs; preparation and recording of deed of trust to secure: assumption; Iender required expenses incident to ndw loan(s): (for example. PMI pmraium,preparuion of loan documents. survey, recording fees, tax service and research foes. warehouse or underwriting fees, copies of restrictions and easements, amortization schedule, premiums for mortgagee title policies and endorsements required by lender, credit reports, photos; required premiums for flood and hazard insurance: required reserve deposit for insurance premiums and ad ]ui,tialed for identification by Buyer and Seller TREC NO. 20-2 N� 112 12/07/98 16:01 FAX 281 427 0864 Randall B Strong 006 OW to Fo,u Fsaaily Ra3id —, 4 Fare bAQ4&r Cnoinn Coacv—r_ Page F,.a l0- 15 -93 (AddtaM of ?rapenyl valorem taxes: inw= on all monthly installment psvrr =t notes from date of disbursements to one moncb prior to dates of first monthly payments: customary _nro== L.)an costs for Buyen one -half of ts`:row f=: and ocher expenses stipulated to be paid by Buyer under other Provisions of rius c0ncrr. E. Py41 premium-not'co ,==d N/A snail be paid by auye and ,yard _n =ash ai'_losin. [ add d to the amount of the loan or C paid as follows: 'F. If any sales expense .exceeds the amount stated in this :onuact to be paid by either pasty. attic- par:ti- rid• ==r_- this contract unless either party agrees to pay such excess. In no event shall Buyer pay charges and fees expressly proii baed by the Texas Veteran's Housing Assistance Program or other government loan program regulations. 13. PRORATIONS: Flood and hazard insurance premiums (excluding mortgage insurance), taxes for the current year, interest, maintenance fees, assessments and rents shall be prorated through the Closing Date_ However. if a loan is assumed and the lender maintains an escrow account for the payment of taxes and insurance, the above items ❑ shall shall not be prorated- wherher or not proration are made. the escrow account shall be transferred to Buyer without any deficiency. ',If proraations are made Buyer shall reimburse Seller for the arnoum in the transferred account. If proration are not made, the escrow account shall be transferred to Buyer without reimbursement to Seller. If a transfer is permitted by the insurance carrier, the insurance policy in forte 0 shall C:] shall not be transferred to Buyer. If the insurance policy in force is not transferred, Buyer shill pay the premium for anew policy. • 14. CASUALTY LOSS: ' If any part of the Property is damaged or destroyed by fire or other casualty loss. Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller is unable to do so without fault, Buyer tray either (a) terminate this contract and the Earnest Money shall be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date shall be extended as necessary or (c) accept the Property in its damaged condition and accept as assignment of insursi= proceeds. Provisions of the Texas Property Code to the contrary shall not apply - 15. DEFAULT. If Buyer fails to comply with this contract, Buyer shall be in default. and Seller :nay either (a) enforce specific performance. seek such other relief as may be provided by law. or both, or (b) terminate this contract and receive the Earnest Money as liquidated damages, thereby releasing both parties from this contract. If Seller is unable Without fault to make any non - casualty repairs or deliver the Commin —at within the time allowed. Buyer may either terminate this contract and receive the Earnest Money as the sofa remedy or extend the dyne for performance up to 15 days and the Closing Date shall be extended as nr+_iuczafy. . If Seiler fails to comply with this contract for any other reason, Seller shall be in default and Buyer may either (a) anforce specific perfortance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the Earnest Money, thereby releasing both parties from this contract. 16. ATTORNEY'S FEES: If Buyer, Seller. listing Broker, Other Broker or Escrow Agent is a prevailing parry in any legal proceeding brought under or with relation to this contract, such party shall be entitled to recover from the non - prevailing parry all costs of such proceeding and reasonable attorney's fees. 17. ESCROW: Tha Earnest Money is deposited with Escrow Agent with the understanding that Escrow Agent is not (a) a parry to this contract and does not have any liability for the performance or non- performance of any party to this contract. (b) liable for interest on the Earnest Money or (c) liable for any loss of Earnest Money caused by the failure of any financial institution in which the Earnest Money has been deposited unless the financial institudon is acting as Escrow Agent. If either parry makes demand for the payment of the Earnest Money. Escrow Agent has the right to require from all parties and brokers a written release of liability of Fscrow Agent for disbursement of the Earnest Money. Any refund or disbursement of Earnest Money under this contract shall be reduced by the amount of unpaid expenses incurred on behalf of tha parry receiving the Earnest. Money, and Escrow Agent small pay the same to the creditors entitled thereto. At closing, the Earnest Money shall beapplied first to any cash down payment. then to Buyer's dosing costs and any excess refunded to Buyer. Demands and notices required by this paragraph Shall be in writing and delivered by hand delivery or by certified mail. return receipt requested. I& REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments. Uniform Commercial Code or other security interests against the Property which will not be satisfied out of the -Sales Price unless securing payment of any loans assumed by Buyer and (b) assumed loans will be without default. If any representation in this contract is untrue on the Closing Dare, this contract may be cerrrunated by Buyer and the Earnest Money shall be refunded to Buyer. All mpmsent3tioas contained in this contract and an agreement for mediation shall survive closing. 19. NOTICES: All notices shall be in writing and effective when mailed to or hand - delivered at the addresses shown below. 20. FEDERAL TAX REQUIREMENT: If Salley is a 'foreign person'. as defined by applicable law, or if Stiller fails to deliver an affidavit that Seller is not a 'foreign person', then Buyer shall withhold from the ttalu pnxaedi an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction. 2L DISPUTE RESOLUTION: It is the policy of the State of Texas to encourage the peaceable resolution of disputes through altcrna4ve dispute resolution procedures. The panics arc encouraged to use an addendum approved by TREC in submit to Initialed for identificz6oc by Buyer and Seller. TREC NO. 20-2 N� 1 12 12/07/98 16:01 FAX 281 427 0864 Randall B Strong [a 07 ona to Four Family Rcaidcnlia! Eamett honey Canino Conccming Page Si: 10-25-93 (Addmu of Property) mediation disputes Which cannot be resolved in good faith through informal discussion. 22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their wrimn agreement. Addenda Which are a parr of this contract are (list): 23. CONSULT YOUR ATTORNEY: Brokers cannot give legal advice. This is tnreeded to be a ieraUy brndmg contract. lil: A ) IT CAREFULLY. If you do not untdersrand the effect of this contract, consult your attorney BEFORE signing. Buyer's Seller's Attorney: Attorney: EXECUTED in multiple originals the day of . 19 SINE EFFECT7vE D,47F). (BROKER: Flu IN THE DATE OF FINAL ACCEPTANCE AND THE PAR77ES ADDRESSES.) Buyer Seller Buyer Seller Buyer's, dd, Phone No_ Seller's Address Phoa The form of this contract has been approved by the Texas Real Estate Commission. Such approval relates to this contract form only. No representation is made as to the legal validity or adequacy of any `provr'aioa in any specific transaction. It is not suitable for complex transactions. Extensive riders or additions are not to be used. (M-93) TREC NO. 20-2. This form replaces TREC NO. 20 -1. AGREEMENT BETWEEN BROKERS No. Listing Broker agrees to pay _ . Other Broker, a fee of of the total sales price When the Listing Broker's fee is received. Escrow Agent is authorized and directed to pay Other Broker from listing Broker's fee at closing. Other Broker License No. By: Other Broker's Address Listing Broker License No. By. Phone No. Listing Broker's Address RECEIPT Receipt of ❑ Contract and O S Earnest Money in the form of is aeimowledged. Escrow Agent: . Date: 19 By: Address Phone No., City Texas Zip Code TREC NO. 20-2 `N° 112 12/07/98 16:01 FAX 281 427 0884 Randall B Strong TRACT 1 BEING out of and a part of the Archie Bell so- called four (4) acres situated in the Christian Smith League, Abstract No. 22,"Chanbers County. Texas, and being the same four (4) acres-conveyed to Archie Bell by J.-M. Fisher by deed dated February 5, 1937, and recorded in Volume 56 at Page 362 of the Deed Records of Chambers County, Texas, found to contain 3.495 acres. Said 1.398 acres conveyed to Waunice Bell being more particularly described as follows: BEGINNING at an iron rod set for the Northeast corner of this tract'and.the Northeast corner of said 3.495 acre tract of land and the Northwest corner of the Mrs. Ivy Jefferson 2 acre't=act•of land and in the South line of the Lincoln Cedars Subdivision; THENCE South 07° 30' West with the East line of this tract, the Easc line of said 3.495 acre tract and the West line of said 2 acre tract of band a distance of 211.00 feet to an iron rod set for'the Southeast corner of this tract and the Southeast eovnor of said 3.495 acre tract and the moot Kesc4rn Southwest corner of said 2 ac=e tract of-land in the North line of-the Corean Banks et al tract of land; THENCE South 80' 30' West with the South line of this tract, the South line of said 3.495 acre t=act and the North line of the Banks tract of land a distance of 346.40 feet to an iron • rod set for the Southwest corner of this tract of land and the - Southeast corner of the Archie Bell, Jr. 1.398 acre tract of this murvay and the 6outheast corner of the 20 foot prtvaca road easement; THENCE North Ve 30' West with the West line of this tract, t`e East line'of the Archie Bell, Jr. 1.398 acre tract and the Enst line of said easement a distance of 20.00 feet to an iron rod set for the most Western Northwest corner of this tract in the South line of the Noyal Raymond 0.699 of an ac=e tract of this survey; THENCE North 80' 30' West with the North line of this tract and the South line of the Noyal Raymond 0.699 of an acre tract of this survey a discance of 83.75 feet to an iron vod set for a corner of this tract and the Southeast corner of the Noyal .` Raymond 0.699 of an acre tract; THENCE North 09' 30' Vest with the Dent line of this rracc and t:-te East line of the Noyal Raymond 0.699 of an acre tract a distance of 181.78 feet to an iron rod set !or the northwest come; of this t=act and the Northeast corner of the Noyal Raymond 0.699 of an acre tract in the Korth line of said 3.495 acre trac- and the South line of said Subdivision; THENCE Norch 80' 30' East with the North line of this tract, the N'or:h line of said 3.495 acre trac_ and the South line of said subdivision a distance of 324.34 feet to the PLACE OF BEGINNING, containing within said boundariem 1.398 acres of land, and as ohovn by the map marked "Exhibit A" attached hereto and made a part hereof for all purposes. 1208 12/07/88 16:01 FAX 281 427 0864 Randall B Strong (609 n TRACT 2 BEING situated in the Christian Smith League,' Abstract No. 22, Chambers County, Texas, and being a part of that 0.699 of an-acre tract of land conveyed to Noyal A. Raymond by Archie '13e11, Jr, and Waunice Bell by deed dmccd July 27, 1981, and recorded in Volume 479, Page 506 of the Decd Records'of Chambers County, Texas, and being out 'of and a part of a 4 acre trace of land con - vevcd to'Archie Bell by J. M. Fisher by deed dated Fchruarv'5, 1937, and recorded in Vol►,ne 56, Page 362 of the Decd Records of Chambers County, Texns, and being more particularly - described by metes-and bounds as follows: BECINNINC ac an iron rod found for the Northeast corncr of thin crnct of land and cho Norchoaa: cornar of .Aid 0,699 Acre tract of land in•the North line of said 4 acre tract of land and in the.Souch line of the Block No. l of the LincoliL Ccdars Subdivision and from this point the North - cast corner of said 4 acre tract of land bears North 80' 30' East 324.34 Feet; THENCE South 09' 30' Ea,c with-the East line of this tract and the East line of aoid 0.699 acre tract of land a dis- tance of 181.78 feet to an iron rod found for the Southeast corner of chin tract and tha Southeast corner of said 0.699 acre tract of land; THENCE South 80' 30' West with the South line of this tract and the South line of said 0,699 acre tract of land a dis- tance of 83.75 feet to an iron rod found for the Southwest corner'of this tract of land; TIIENCE North 09' 30' Vest with the Hest line of this tract a distance of 181.78 feet to an iron rod set for the North - wett corner'of this trnct in the North line of said 0.699 Acre tract And in the North line of said 4 acra tract and in the South line of said Subdivision; THENCE North 801 30' fast with the North line of this tract and tAe North line of said 0.699 acre tract, a distance of 83.75 feet to an iron rod found for the Northeast corner of this tract land and the Northeast corner of said 0.699 acre tract of land to the PLACE OF BECINNING. containing =t :yin said boundaries 0.3495 of an acre of land, and as ahovtl by thin m4n markad "exhtbic A" attachtid harato and made a parc hereof for all purposes. • 12/07/98 16:01 FAX 281 427 0864 Randall B Strong t 1 Yr El h N > Q to V � V u ; -s Q V tj �- 219P =n o r : 09G''' qTg `rs • o V P.I R t